Question: Selected comparative financial statements of Haroun
Selected comparative financial statements of Haroun Company follow.
Required
1. Compute trend percents for all components of both statements using 2009 as the base year. (Round percents to one decimal.)
Analysis Component
2. Analyze and comment on the financial statements and trend percents from part 1.
Transcribed Image Text:
HAROUN COMPANY Comparative Income Statements For Years Ended December 31, 2015–2009 ($ thousands) 2015 2014 2013 2012 2011 2010 2009 Sales . $1,694 $1,496 $1,370 $1,264 $1,186 $1,110 $928 Cost of goods sold Gross profit .. 1,246 1,032 902 802 752 710 586 448 464 468 462 434 400 342 Operating expenses 330 256 234 170 146 144 118 Net income $ 18 $ 208 $ 234 $ 292 $ 288 $ 256 $224 HAROUN COMPANY Comparative Balance Sheets December 31, 2015–2009 ($ thousands) 2015 2014 2013 2012 20|1 2010 2009 Assets Cash $ 58 $ 78 82 $ 84 2$ 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 146 146 146 146 Plant assets, net 2,020 2,014 1,752 944 978 860 725 Total assets $4,442 $4,002 $3,5 18 $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 Retained earnings . Total liabilities and equity 250 250 250 170 170 150 150 678 570 438 396 348 290 318 $4,442 $4,002 $3,5 18 $2,600 $2,494 $2,232 $1,800
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> Plum Corporation began the month of May with $700,000 of current assets, a current ratio of 2.50:1, and an acid-test ratio of 1.10:1. During the month, it completed the following transactions (the company uses a perpetual inventory system). May 2 Purch
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