PINNACLE PLUSHorizontal AnalysisIncrease (Decrease)in the Current year (versusPrevious year)Current Year Previous YearAmountPercentageIncome StatementSales RevenueCost of Goods SoldGross ProfitOperating Expenses$118,000 $104,600%53,60048,80064,40055,80040,00035,000Interest Expense4,8004,800Income before Income Tax Expense19,60016,000Income Tax Expense (30%)5,8804,800%Net IncomeBalance Sheet$13,720 $11,20069,620 $18,600Cash$35,400%Accounts Receivable, Net10,400Inventory25,80039,600Property and Equipment, Net95,800109,000%Total AssetsAccounts Payable209,820 $43,600 $$194,400$35,800%Income Tax PayableNote Payable (long-term)Total LiabilitiesCommon Stock (par $10)Retained EarningsTotal Liabilities and Stockholders' Equity2,6001,30048,00048,00094,20085,10081,00081,00034,62028,300$209,820 $194,400%Pinnacle Plus declared and paid a cash dividend of $7,400 in the current year. Its comparative financial statements, prepared iDecember 31, reported the following summarized information:Required:1. Complete the two final columns shown beside each item in Pinnacle Plus's comparative financial statements.2-a. Which account increased by the largest dollar amount?2-b. Which account increased by the largest percentage?

1. Comparative financial statements PINNACLE PLUS Horizontal Analysis Current Year Previous…

Required: 1. Complete the two final columns shown beside each item in Pinnacle Plus's comparative financial statements. 2-a. Which account increased by the largest dollar amount? 2-b. Which account increased by the largest percentage?

Required: 1. Complete the two final columns shown beside each item in Pinnacle Plus's comparative financial statements. 2-a. Which account increased by the largest dollar amount? 2-b. Which account increased by the largest percentage?

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.9E: Working Backward: Gross Profit Ratio Acmes gross profit ratio increased by 20% over the prior year....

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