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    Calculation and analysis of trend percents

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    Problem 13-2A: Calculation and analysis of trend percents L.O. A1, P1
    Selected comparative financial statements of Haroun Company follow:

    HAROUN COMPANY
    Comparative Income Statements ($000)
    For Years Ended December 31, 2009-2003
    2009 2008 2007 2006 2005 2004 2003
    Sales $ 1,694 $ 1,496 $ 1,370 $ 1,264 $ 1,186 $ 1,110 $ 928
    Cost of goods sold 1,246 1,032 902 802 752 710 586
    Gross profit 448 464 468 462 434 400 342
    Operating
    expenses 330 256 234 170 146 144 118
    Net income $ 118 $ 208 $ 234 $ 292 $ 288 $ 256 $ 224

    HAROUN COMPANY
    Comparative Balance Sheets ($000)
    December 31, 2009-2003
    2009 2008 2007 2006 2005 2004 2003
    Assets
    Cash $ 58 $ 78 $ 82 $ 84 $ 88 $ 86 $ 89
    Accounts receivable, net 490 514 466 360 318 302 216
    Merchandise inventory 1,838 1,364 1,204 1,032 936 810 615
    Other current assets 36 32 14 34 28 28 9
    Long-term investments 0 0 0 146 146 146 146
    Plant assets, net 2,020 2,014 1,752 944 978 860 725
    Total assets $ 4,442 $ 4,002 $ 3,518 $ 2,600 $ 2,494 $ 2,232 $ 1,800
    Liabilities and Equity
    Current liabilities $1,220 $1,042 $ 718 $ 614 $ 546 $ 522 $ 282
    Long-term liabilities 1,294 1,140 1,112 570 580 620 400
    Common stock 1,000 1,000 1,000 850 850 650 650
    Other paid-in capital 250 250 250 170 170 150 150
    Retained earnings 678 570 438 396 348 290 318
    Total liabilities and equity $ 4,442 $ 4,002 $ 3,518 $ 2,600 $ 2,494 $ 2,232 $ 1,800

    Required:
    Compute trend percents for all components of both statements using 2003 as the base year. (Round your
    answer to 1 decimal place. Omit the "%" sign, which is provided for you.)

    HAROUN COMPANY
    Income Statement Trends
    For Years Ended December 31, 2009-2003
    2009 2008 2007 2006 2005 2004 2003
    Sales % % % % % % %
    Cost of goods sold
    Gross profit
    Operating expenses
    Net income

    HAROUN COMPANY
    Balance Sheet Trends
    December 31, 2009-2003
    2009 2008 2007 2006 2005 2004 2003
    Cash % % % % % % %
    Accounts receivable,
    net
    Merchandise inventory
    Other current assets
    Long-term investments
    Plant assets, net
    Total assets
    Current liabilities
    Long-term liabilities
    Common stock
    Other paid-in capital
    Retained earnings
    Total liabilities and
    equity

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    https://brainmass.com/business/accounting/calculation-and-analysis-of-trend-percents-219473

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    HAROUN COMPANY
    Income Statement Trends
    First Year Ended December 31, 2009-2003
    2009 (%) 2008 (%) 2007 (%) 2006 (%) 2005 (%) 2004 (%) 2003(%)
    Sales 182.5% 161.2% 147.6% 136.2% 127.8% 119.6% 100.0%
    Cost of goods sold 182.5% 161.2% 147.6% 136.2% 127.8% 119.6% 100.0%
    Gross profit 131.0% 135.7% 136.8% 135.1% 126.9% 117.0% 100.0%
    Operating ...

    Solution Summary

    The solution comprised of calculation and analysis of trend percents.

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