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Accounting
[The following information applies to the questions displayed below.]
The comparative financial statements prepared at December 31, 2015, for Prince Company showed the following summarized data:
2015
2014
Income statement:
Sales revenue
$
191,000
*
$
168,400
Cost of goods sold
113,900
101,500
Gross profit
77,100
66,900
Operating expenses and interest expense
58,000
55,000
Pretax income
19,100
11,900
Income tax
5,730
3,570
Net income
$
13,370
$
8,330
Balance sheet:
Cash
$
4,900
$
6,500
Accounts receivable (net)
16,000
16,500
Inventory
41,300
32,300
Operational assets (net)
45,000
37,700
$
107,200
$
93,000
Current liabilities (no interest)
$
15,000
$
16,000
Long-term liabilities (10% interest)
44,800
44,800
Common stock (par $5)
29,800
29,800
Retained earnings
17,600
2,400
$
107,200
$
93,000
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.)
PRINCE COMPANY
Income Statement
At December 31, 2015
Increase (Decrease)
2015 over 2014
Amount
Percent
Sales revenue
%
Cost of goods sold
%
Gross profit
%
Operating expenses and interest expense
%
Pretax income
%
Income tax
%
Net income
%
PRINCE COMPANY
Balance Sheet
At December 31, 2015
Increase (Decrease)
2015 over 2014
Amount
Percent
Cash
%
Accounts receivable (net)
%
Inventory
%
Operational assets (net)
%
$0
%
Current liabilities (no interest)
%
Long-term liabilities (8% interest)
Common stock (par $5)
Retained earnings
%
$0
%
By what amount did working capital change?
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