AC 202: Chapter 13 Homework. LATEST EXAM QUESTIONS All Solutions Worked Out Step by Step

Here are the comparative income statements of Concord Corporation. CONCORD CORPORATION Comparative Income Statement For the Years Ended December 31 2017 2016 Net sales $638,000 $562,900 Cost of goods sold 452,500 434,800 Gross Profit 185,500 128,100 Operating expenses 78,700 42,800 Net income $ 106,800 $ 85,300 (a) Your answer is correct. Prepare a horizontal analysis of the income statement data for Concord Corporation, using 2016 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.) CONCORD CORPORATION Comparative Income Statement For the Years Ended December 31 Increase or (Decrease) During 2016 Amount Percentage $ $ Net income $ 106,800 $ 85,300 % Net sales $638,000 100 % $562,900 100 % Cost of goods sold 452,500 70.9 % 434,800 77.2 % Gross Profit 185,500 29.1 % 128,100 22.8 % Operating expenses 78,700 12.3 % 42,800 7.6 % Net income $ 106,800 16.7 % $ 85,300 15.2 % Exercise 13-5 Suppose the comparative balance sheets of Splish Brothers Inc. are presented here. SPLISH BROTHERS INC. Condensed Balance Sheet May 31 ($ in millions) 2017 2016 Assets Current Assets $9,710 $8,720 Property, plant, and equipment (net) 1,940 1,870 Other assets 1,500 1,690 Total assets $13,150 $12,280 Liabilities and Stockholders' Equity Current Liabilities $3,220 $3,330 Long-term liabilities 1,330 1,380 Stockholders’ equity 8,600 7,570 Total liabilities and stockholders' equity $13,150 $12,280 (a) Prepare a horizontal analysis of the balance sheet data for Splish Brothers, using 2016 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, - 20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.) SPLISH BROTHERS INC. Condensed Balance Sheet May 31 ($ in millions) 2017 2016 Increase (Decrease) Percentage Change from 2013 Assets $ Current Assets $9,710 $8,720