Question

Selected comparative financial statements of Haroun Company follow. HAROUN COMPANY Comparative Income Statements For Years Ended December 31, 2017-2011 ($ thousands) Sales Cost of goods sold Gross profit Operating expenses 2017 2016 2015 2014 2013 2012 2011 $2,533 $2,219 $2,019 $1,850 $1,727 $1,606 $1,316 1,115 1,274 969 1,820 713 1,481 1,036 772 738 745 735 691 637 544 542 424 389 287 249 245 204 Net income 171 314 $ 356 $ 448 442 392 340 HAROUN COMPANY Comparative Balance Sheets December 31, 2017-2011 ($ thousands) 2017 2016 2015 2014 2013 2012 2011 Assets Cash 130 128 $ 132 89 118 122 125 Accounts receivable, net 640 672 608 467 411 389 275 Merchandise inventory 2,315 1,472 1,114 1,685 1,241 946 686 Other current assets 59 54 33 59 50 51 26 Long-term investments Plant assets, net 182 182 182 182 2,832 2,821 1,439 1,280 2,469 1,392 1,099 $5,935 $5,350 $4,704 $3,466 $2,976 $2,400 Total assets $3,326 Liabilities and Equity $ 362 Current liabilities $1,491 $1,254 $ 822 $684 $ 1,352 1,080 270 1,180 594 561 Long-term liabilities Common stock 1,390 1,080 694 1,595 628 641 521 1,080 960 960 840 840 Other paid-in capital Retained earnings 270 270 240 240 210 210 467 1,499 1,356 954 891 671 Total liabilities and equity $4,704 $5,935 $5,350 $2,976 $2,400 $3,466 $3,326 Required: 1. Complete the below table to calculate the trend percents for all components of both statements using 2011 as the base year. (Round your percentage answers to 1 decimal place.)

Answer 1

HAROUN COMPANY
Income Statement Trends
For Years ended Decemeber 31, 2017-2011
	2017	2016	2015	2014	2013	2012	2011
Sales	192.5%	168.6%	153.4%	140.6%	131.2%	122.0%	100.0%
Cost of goods sold	235.8%	191.8%	165.0%	144.4%	134.2%	125.5%	100.0%
Gross profit	131.1%	135.7%	136.9%	135.1%	127.0%	117.1%	100.0%
Operating expenses	265.7%	207.8%	190.7%	140.7%	122.1%	120.1%	100.0%
Net income	50.3%	92.4%	104.7%	131.8%	130.0%	115.3%	100.0%

HAROUN COMPANY
Balance Sheet Trends
Decemeber 31, 2017-2011
	2017	2016	2015	2014	2013	2012	2011
Assets
Cash	67.4%	89.4%	92.4%	94.7%	98.5%	97.0%	100.0%
Accounts receivable, net	232.7%	244.4%	221.1%	169.8%	149.5%	141.5%	100.0%
Merchandise inventory	337.5%	245.6%	214.6%	180.9%	162.4%	137.9%	100.0%
Other current assets	226.9%	207.7%	126.9%	226.9%	192.3%	196.2%	100.0%
Long-term investments	0.0%	0.0%	0.0%	100.0%	100.0%	100.0%	100.0%
Plant assets, net	257.7%	256.7%	224.7%	126.7%	130.9%	116.5%	100.0%
Total assets	247.3%	222.9%	196.0%	144.4%	138.6%	124.0%	100.0%
Liabilities and Equity
Current liabilities	411.9%	346.4%	227.1%	189.0%	164.1%	155.0%	100.0%
Long-term liabilities	306.1%	266.8%	259.5%	120.5%	123.0%	133.2%	100.0%
Common stock	128.6%	128.6%	128.6%	114.3%	114.3%	100.0%	100.0%
Other paid-in capital	128.6%	128.6%	128.6%	114.3%	114.3%	100.0%	100.0%
Retained earnings	321.0%	290.4%	252.7%	204.3%	190.8%	143.7%	100.0%
Total liabilities and equity	247.3%	222.9%	196.0%	144.4%	138.6%	124.0%	100.0%