P13–6. Req. 1 Increase (Decrease) 2015 over 2014 Income Statement 2015 2014 Amount Percent $190,0001 23,000 13.77 Sales revenue $167,000 $ 12,000 12 Cost of goods sold 112,000 100,000 11,000 16.42 Gross profit 78,000 67,000 3,000 5.66 Operating expenses and interest expense 56,000 53,000 8,000 57.14 Pretax income 22,000 14,000 4,000 100 Income tax 8,000 4,000 4,000 40 Net income 14,000 10,000 $ Balance Sheet -3,000 -42.86 Cash $4,000 $7,000 $ -4,000 -22.22 Accounts receivable (net) 14,000 18,000 6,000 17.65 Inventory 40,000 34,000 7,000 18.42 Operational assets (net) 45,000 38,000 6,000 6.19 103,000 97,000 $ -1,000 -5.88 Current liabilities (no interest) $16,000 $17,000 $ 0 0 Long-term liabilities (10% interest) 45,000 45,000 0 0 Common (par $5) 30,000 30,000 7,000 140 Retained earnings 12,000 5,000 6,000 6.19 103,000 97,000 $ 1One-third was credit sales. Req. 2 0 Working capital change P13–7.
P13–6. Req. 1 Increase (Decrease) 2015 over 2014 Income Statement 2015 2014 Amount Percent Sales revenue $190,0001 $167,000 $ 23,000 13.77 Cost of goods sold 112,000 100,000 12,000 12 Gross profit 78,000 67,000 11,000 16.42 Operating expenses and interest expense 56,000 53,000 3,000 5.66 Pretax income 22,000 14,000 8,000 57.14 Income tax 8,000 4,000 4,000 100 Net income 14,000 10,000 $ 4,000 40 Balance Sheet Cash $4,000 $7,000 $ -3,000 -42.86 Accounts receivable (net) 14,000 18,000 -4,000 -22.22 Inventory 40,000 34,000 6,000 17.65 Operational assets (net) 45,000 38,000 7,000 18.42 103,000 97,000 $ 6,000 6.19 Current liabilities (no interest) $16,000 $17,000 $ -1,000 -5.88 Long-term liabilities (10% interest) 45,000 45,000 0 0 Common (par $5) 30,000 30,000 0 0 Retained earnings 12,000 5,000 7,000 140 103,000 97,000 $ 6,000 6.19 1One-third was credit sales. Req. 2 Working capital change 0 P13–7.
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