The comparative financial statements for Prince Company are below: ...
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Accounting
The comparative financial statements for Prince Company are below:
Year 2
Year 1
Income statement:
Sales revenue
$
190,400
$
167,300
Cost of goods sold
112,100
101,500
Gross profit
78,300
65,800
Operating expenses and interest expense
57,100
54,100
Pretax income
21,200
11,700
Income tax
6,360
3,510
Net income
$
14,840
$
8,190
Balance sheet:
Cash
$
4,100
$
6,100
Accounts receivable (net)
15,000
16,600
Inventory
41,900
33,100
Property and equipment (net)
46,200
37,600
Total assets
$
107,200
$
93,400
Current liabilities (no interest)
$
14,800
$
15,800
Long-term liabilities (9 interest)
43,500
43,500
Common stock ($5 par value, 5,200 shares outstanding)
26,000
26,000
Retained earnings
22,900
8,100
Total liabilities and stockholders' equity
$
107,200
$
93,400
Required:
1. Complete the following columns for each item in the preceding comparative financial statements: (Round your percentage answers to 2 decimal places.(i.e., 0.1234 should be entered as 12.34).Decreases should be indicated by a minus sign.) Show Amount and Percent
Required : Sales Revenue(base amount), Cost of goods sold, Gross profit on sales, Operating expenses and interest expense , Pretax income, Incomes taxes, Net income, cash, Accounts receivable (net) , inventory, Property and equipment (net) Current liabilities(no interest), Long-term liabilities (9%interest), Retained earnings, Common stock($5 par value, 5,200 shares outstanding), Total liabilities and owners equity(the base amount)
2. By what amount did the current ratio change? (Round your intermediate calculations and final answer to 2 decimal places.)
Answer & Explanation
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