Problem statements prepared at October 31, for Tiger Audio showed the following

Question

Problem statements prepared at October 31, for Tiger Audio showed the following selected data Increase (Decrease) in the Current Year (versus Previous Year) Chart #1: Current Years Previous Year: Amount Percentage: $ 222,000 185,000 $ 4,000 3,270 $35,525 25,900 40,000 38,000 s 25,000 $ 22,000 $ 105,500 $ 120,000 $ 105,000$ 75,000 Total Liabilities&Stockholders;' Equity 210,500 195,000 Sales Revenue Interest Expense Net Income Cash &Cash; Equivalents Merchandise Inventory Total Liabilities Total Stockholders' Equity Current Year $ 222,000 127,650 $39,600 $ 35,525 $ 18,500 5 127,000 210,500 27,00o $75,500 $25,000 $ 80,000 Percentage: Previous Year:Percentage: Chart W2: Sales Revenue Cost of Goods Sold Operating Expenses Net Income Accounts Receivable, Net Property and Equipment, Net Total Assets Accounts Payable Note Payable (Long-term) Common Stock (Par $1) Retained Earnings Total Liabilities & Stockholders' Equity $ 185,000 $ 111,000 33,730 $ 25,900 S 16,000 119,000 $ 195,000 $ 25,000 92,200 20,000 $ 55,000 $ 195,000 210,500 above charts using horizontal and vertical analyses. (Round all answers to 2 decimal places) horizontal analysis, which value increased by the largest dollar amount? Required: According to your calculations for ording to your calculations for horizontal analysis, which value increased by the largest percentage? : Acc Required Required: According to your calculations for vertical analysis, name two reasons why net income changed? Required: According to your calculations, does Tiger Audio rely more on debt or equity financing? Explain

Explanation / Answer

Solution:-

Required 1:-

Required 2:-

Sales Amount Increased by Largest Dollar Amount by $ 37,000

Required 3:-

Total Stock Holder's Equity Increased by 40% Largest by all values in percentage.

Required 4:-

Net Income Changed because of Chanage in Sales Revenue and Decrease in Proportion of Value of Cost of Goods Solds.

Required 5:- Debt or Equity of Tiger Audio is almost equal for Financing.

Chart 1:- Horizonal Analysis Particulars Current Year Previous Year Increase/ (Decrease) Percentage Sales Revenue 222000 185000 37000 20.00 Interest Expenses 4000 3270 730 22.32 Net Income 35525 25900 9625 37.16 Cash and Cash Equivalents 40000 38000 2000 5.26 Merchandise Inventory 25000 22000 3000 13.64 Total Liabilities 105500 120000 -14500 -12.08 Total Stock Holder's Equity 105000 75000 30000 40.00 Total Liabilities and Stock Holder's Equity 210500 195000 15500 7.95

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