ACCT 2302 Ch 13 Analysis of Financial Statements Homework

1. Selected comparative financial statements of Haroun Company follow. HAROUN COMPANY Comparative Income Statements For Years Ended December 31, 2019–2013 ($ thousands) Sales $2,839 $2,487 $2,263 $2,074 $1,935 $1,800 $1,475 Cost of goods sold 2,042 1,661 1,429 1,251 1,162 1,087 866 Gross profit 713 609 Operating expenses 275 229 Net income $ 189 $ 350 $ 398 $ 501 $ 494 $ 438 $ 380 HAROUN COMPANY Comparative Balance Sheets December 31, 2019–2013 ($ thousands) Assets Cash $ 89 $ 118 $ 122 $ 125 $ 130 $ 128 $ 132 Accounts receivable, net 389 275 Merchandise inventory 2,315 1,685 1,472 1,241 1, Other current assets 51 26 Long-term investments 182 182 Plant assets, net 2,832 2,821 2,469 1,392 1,439 1,280 1,099 Total assets $5,935 $5,350 $4,704 $3,466 $3,326 $2,976 $2,400 Liabilities and Equity Current liabilities $1,491 $1,254 $ 822 $ 684 $ 594 $ 561 $ 362 Long-term liabilities 1,595 1,390 1, Common stock 1,080 1,080 1, Other paid-in capital 210 210 Retained earnings 1,499 1,356 1, Total liabilities and equity $5,935 $5,350 $4,704 $3,466 $3,326 $2,976 $2,400 Required: 1. Complete the below table to calculate the trend percents for all components of both statements using 2013 as the base year. 2. Refer to the results from part 1. (a) Did sales grow steadily over this period? (b) Did net income as a percent of sales