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Solution

Solution 1:

Solution 2a:

Cash account increased by largest dollar amount.

Solution 2b:

Income tax payable increased by largest percentage.

Pinnacle Plus
Horizontal Analysis
			Increase (Decrease) in Current year (Versus previous year)
Particulars	Current year	Previous Year	Amount	Percentage
Income Statement:
Sales Revenue	$119,000.00	$105,300.00	$13,700.00	13.0%
Cost of goods Sold	$53,800.00	$48,900.00	$4,900.00	10.0%
Gross Profit	$65,200.00	$56,400.00	$8,800.00	15.6%
Operating expenses	$40,500.00	$35,250.00	$5,250.00	14.9%
Interest expenses	$4,900.00	$4,900.00	$0.00	0.0%
Income before income tax expense	$19,800.00	$16,250.00	$3,550.00	21.8%
Income tax expense (30%)	$5,940.00	$4,875.00	$1,065.00	21.8%
Net Income	$13,860.00	$11,375.00	$2,485.00	21.8%
Balance sheet:
Cash	$71,750.00	$37,200.00	$34,550.00	92.9%
Accounts receivables Net	$18,800.00	$10,200.00	$8,600.00	84.3%
Inventory	$25,900.00	$39,800.00	-$13,900.00	-34.9%
Property and Equipment Net	$95,900.00	$109,500.00	-$13,600.00	-12.4%
Total Assets	$212,350.00	$196,700.00	$15,650.00	8.0%
Accounts payable	$43,800.00	$35,900.00	$7,900.00	22.0%
Income tax payable	$2,800.00	$1,400.00	$1,400.00	100.0%
Notes payable	$49,000.00	$49,000.00	$0.00	0.0%
Total liabilities	$95,600.00	$86,300.00	$9,300.00	10.8%
Common stock (Par $100)	$82,000.00	$82,000.00	$0.00	0.0%
Retained Earnings	$34,750.00	$28,400.00	$6,350.00	22.4%
Total liabilities and stockholder\'s Equity	$212,350.00	$196,700.00	$15,650.00	8.0%