KQuestions 10-11(of 12) IThe following Information apples to the questions displ
ID: 2522561 • Letter: K
Question
KQuestions 10-11(of 12) IThe following Information apples to the questions displayed belowj The comparative financial statements prepared at December 31, 2015, for Prince Company showed the following summarized data: Income statement Sales revenue Cost of goods sold $190,600 $167,800 100,600 113,700 Gross profit Operating expenses and interest expense 76,900 57100 67,200 54100 Pretax income Income tax 19,800 5,940 13,100 3,930 Net income $ 13.860$ 9170 Balance sheet: Cash Accounts receivable (net) Inventory Operational assets (net $ 5,300S 6100 17700 33,600 37,900 4.700 41,500 46,000 $107,500$ 95.300 Current llabilities tno interest) Long-term liabilities (10% interest Common stock tpar $5) Retained earnings $ 15,400$16,400 44,000 28,200 6,700 44,000 28,200 19,900 $107,500$95.300 One-third was credit sales vauc 10o points Required: fotrowing columns for tom in the preceding comparatve thancal statoments Round your percentage answers to 2 decimal placo should be indicated by a minus sga uld be indicated by a minus sign.) s.(i.?., 0,1234 should be entered as 12.34). 03234 should be entered s 12 34)Explanation / Answer
Solution:
Income Statement
At December 31, 2015
Increase (Decrease)
2015 over 2014
Working
Amount
Percent
2015
2014
Increase or (Decrease)
Sales revenue
$22,800
13.59%
$190,600
$167,800
$22,800
Cost of goods sold
$13,100
13.02%
$113,700
$100,600
$13,100
Gross profit
$9,700
14.43%
$76,900
$67,200
$9,700
Operating expenses and interest expenses
$3,000
5.55%
$57,100
$54,100
$3,000
Pretax income
$6,700
51.15%
$19,800
$13,100
$6,700
Income tax
$2,010
51.15%
$5,940
$3,930
$2,010
Net Income
$4,690
51.15%
$13,860
$9,170
$4,690
Balance Sheet
At December 31, 2015
Increase (Decrease)
2015 over 2014
Amount
Percent
Cash
-$800
-13.11%
$5,300
$6,100
-$800
Accounts Receivable (net)
-$3,000
-16.95%
$14,700
$17,700
-$3,000
Inventory
$7,900
23.51%
$41,500
$33,600
$7,900
Operational Assets (net)
$8,100
21.37%
$46,000
$37,900
$8,100
$12,200
12.80%
$107,500
$95,300
$12,200
Current liabilities (no interest)
-$1,000
-6.10%
$15,400
$16,400
-$1,000
Long term liabilities (10% interest)
$0
0.00%
$44,000
$44,000
$0
Common Stock (par $5)
$0
0.00%
$28,200
$28,200
$0
Retained Earnings
$13,200
197.01%
$19,900
$6,700
$13,200
$12,200
12.80%
$107,500
$95,300
$12,200
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Income Statement
At December 31, 2015
Increase (Decrease)
2015 over 2014
Working
Amount
Percent
2015
2014
Increase or (Decrease)
Sales revenue
$22,800
13.59%
$190,600
$167,800
$22,800
Cost of goods sold
$13,100
13.02%
$113,700
$100,600
$13,100
Gross profit
$9,700
14.43%
$76,900
$67,200
$9,700
Operating expenses and interest expenses
$3,000
5.55%
$57,100
$54,100
$3,000
Pretax income
$6,700
51.15%
$19,800
$13,100
$6,700
Income tax
$2,010
51.15%
$5,940
$3,930
$2,010
Net Income
$4,690
51.15%
$13,860
$9,170
$4,690
Balance Sheet
At December 31, 2015
Increase (Decrease)
2015 over 2014
Amount
Percent
Cash
-$800
-13.11%
$5,300
$6,100
-$800
Accounts Receivable (net)
-$3,000
-16.95%
$14,700
$17,700
-$3,000
Inventory
$7,900
23.51%
$41,500
$33,600
$7,900
Operational Assets (net)
$8,100
21.37%
$46,000
$37,900
$8,100
$12,200
12.80%
$107,500
$95,300
$12,200
Current liabilities (no interest)
-$1,000
-6.10%
$15,400
$16,400
-$1,000
Long term liabilities (10% interest)
$0
0.00%
$44,000
$44,000
$0
Common Stock (par $5)
$0
0.00%
$28,200
$28,200
$0
Retained Earnings
$13,200
197.01%
$19,900
$6,700
$13,200
$12,200
12.80%
$107,500
$95,300
$12,200
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