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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

Attachments

Solution Preview

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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.

$2.19