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Problem 13-1A Calculation and analysis of trend percents LO A1, P1 Selected comparative financial statements of Haroun Company follow. HAROUN COMPANY Comparative Income Statements For Years Ended December 31, 2017-2011 2017 2016 2015 2014 2013 $1,490 $1,305 $1,187 $1,088 $1,015 1,071 871 749 656 609 419 434 438 432 406 319 249 169 146 $ 100 $ 299 $ 263 $ 260 2012 $ 944 (5 thousands) Sales Cost of goods sold Gross profit Operating expenses Net income 2011 $ 774 454 229 $ 230 HAROUN COMPANY Comparative Balance Sheets December 31, 2017-2011 2017 2016 2015 2014 2013 2012 2011 $ $ 100 720 2,604 67 149 $ 1325 756 1,896 60 138 684 1,656 140 525 144 438 1,065 57 309 1, 396 ($ thousands) Assets Cash Accounts receivable, net Merchandise inventory Other current assets Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity 5 146 462 1,254 56 205 1,519 53,742 205 772 30 205 1.235 $2,700 3,186 $6.677 66 205 1,567 $3,899 3,174 56,018 2,777 $5,292 1,439 53,348 $1.50 51.413 $ 408 706 731 536 927 5 771 5669 5633 1.521 721 1.215 1930 1.288 945 4 270 270 1,325 1,072 1.002 55,292 $3,899 $3,742 3.348 1.584 $6,677 152 $6,018 525 $2,700

Answer 1

Solution

HAROUN COMPANY
Income Statement Trends
For the year ended December 31, 2017-20177
	2017	2016	2015	2014	2013	2012	2011
Sales	200.3%	175.4%	159.5%	146.2%	136.4%	126.9%	100.0%
Cost of Goods Sold	235.9%	191.9%	165.0%	144.5%	134.1%	125.6%	100.0%
Gross Profit	144.5%	149.7%	151.0%	149.0%	140.0%	129.0%	100.0%
Operating Expenses	265.8%	207.5%	190.8%	140.8%	121.7%	120.0%	100.0%
Net Income	58.8%	108.8%	122.9%	154.7%	152.9%	135.3%	100.0%

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HAROUN COMPANY
Comparative Balance Sheet Trends
December 31, 2017-20177
	2017	2016	2015	2014	2013	2012	2011
Assets
Cash	67.1%	88.6%	92.6%	94.0%	98.0%	96.6%	100.0%
Accounts Receivables,Net	233.0%	244.7%	221.4%	169.9%	149.5%	141.7%	100.0%
Merchandise Inventory	337.3%	245.6%	214.5%	180.8%	162.4%	138.0%	100.0%
Other Current Assets	223.3%	200.0%	123.3%	220.0%	186.7%	190.0%	100.0%
Long term Investments	0.0%	0.0%	0.0%	100.0%	100.0%	100.0%	100.0%
Plant assets, net	258.0%	257.0%	224.9%	126.9%	131.1%	116.5%	100.0%
Total Assets	247.3%	222.9%	196.0%	144.4%	138.6%	124.0%	100.0%
Liabilities amd Equity
Current Liabilities	411.8%	346.3%	227.2%	189.0%	164.0%	155.1%	100.0%
Long-Term Liabilities	306.1%	266.7%	259.6%	120.5%	123.0%	133.3%	100.0%
Common Stock	128.6%	128.6%	128.6%	114.3%	114.3%	100.0%	100.0%
Other Paid-in Capital	128.8%	128.8%	128.8%	114.4%	114.4%	100.0%	100.0%
Retained Earnings	320.8%	290.1%	252.4%	204.2%	190.9%	143.4%	100.0%
Total Liabilities and equity	247.3%	222.9%	196.0%	144.4%	138.6%	124.0%	100.0%