Problem 171A Calculation and analysis of trend percents LO A

Problem 17-1A Calculation and analysis of trend percents LO A1, P1 Selected comparative financial statements of Haroun Company follow. HAROUN COMPANY Comparative Income Statements For Years Ended December 31, 2017-2011 ($ thousands) Sales Cost of goods sold Gross profit Operating expenses Net income 2017 2016 2015 2014 20132012 2011 $1,833 $1,605 $1,460 $1,339 $1,249 $1,161 $ 952 702 559 459 393 178 148 $ 122 225 256 324 $ 319 281 $ 245 1,318 1,072 533 308 515 393 9220 538 282 807 532 208 750 499 180 HAROUN COMPANY Comparative Balance Sheets December 31, 2017-2011 2015 2012 ($ thousands) AssetS Cash Accounts receivable, net Merchandise inventory Other current assets Long-term investments Plant assets, net Total assets 2017 2016 2014 2013 2011 5 66882 $ 145 191 $ 199 203 $ 211 208 215 446 3,762 2,738 2,393 2,016 1,8111,538 1,115 43 296 4,602 4,585 4,010 2,263 2,338 2,079 1,785 $9,645 8,693 $7,644 $5,632 $5,405 $4,836 $3,900 1,040 1,092 988 758 633 96 87 54 296 296 296 Liabilities and Equity Current liabilities Long-term liabilities Common stock Other paid-in capital Retained earnings $2,426 $2,040 $1,338 $1,113 $ 966 $914 $589 846 1,755 1,755 1,755 1,560 1,560 1,365 1, 365 341 739 $9,645 8,693 $7,644 $5,632 $5,405 $4,836 $3,900 2,5902,256 2,195 1,019 1,0411,128 439 439 439 390 390 341 2,435 2,203 1,917 1,5501,448 1,088 Total liabilities and equity

Solution

Haroun Compabny Income stataement trends For years ended December 31,2017-2011 2017 2016 2015 2014 2013 2012 2011 Sales 192.5% 168.6% 153.4% 140.7% 131.2% 122.0% 100% Cost of goods sold 235.8% 191.8% 164.9% 144.4% 134.2% 125.6% 100% Gross profit 131.0% 135.6% 136.9% 135.4% 127.0% 116.8% 100% Operating expenses 265.5% 208.1% 190.5% 140.5% 121.6% 120.3% 100% Net Income 49.8% 91.8% 104.5% 132.2% 130.2% 114.7% 100% Eg : 2012 1161/952 = 122% Rounded of to 1 decimal Haroun Compabny Balance Sheet trends December 31,2017-2011 2017 2016 2015 2014 2013 2012 2011 Assets Cash 67.4% 88.8% 92.6% 94.4% 98.1% 96.7% 100% Accounts Receivable, NET 233.2% 244.8% 221.5% 170.0% 149.8% 141.9% 100% Merchandise Inventory 337.4% 245.6% 214.6% 180.8% 162.4% 137.9% 100% Other Current Assets 223.3% 202.3% 125.6% 223.3% 188.4% 190.7% 100% Long-term Investments 0.0% 0.0% 0.0% 100.0% 100.0% 100.0% 100% Plant assets,net 257.8% 256.9% 224.6% 126.8% 131.0% 116.5% 100% Total Assets 247.3% 222.9% 196.0% 144.4% 138.6% 124.0% 100% Liabilities and equity Current Liabilities 411.9% 346.3% 227.2% 189.0% 164.0% 155.2% 100% Long-term Liabilities 306.1% 266.7% 259.5% 120.4% 123.0% 133.3% 100% Common Stock 128.6% 128.6% 128.6% 114.3% 114.3% 100.0% 100% Other Paid in capital 128.7% 128.7% 128.7% 114.4% 114.4% 100.0% 100% Retained Earnings 320.8% 290.3% 252.6% 204.2% 190.8% 143.3% 100% Total Liabilities and equity 247.3% 222.9% 196.0% 144.4% 138.6% 124.0% 100% example: 2012 cash 208/215 = 96.7%