What was the percent increase or decrease in net property

Reference no: EM131015183

QUESTION 1: The following data on Graphic View, Inc. is available.

Graphic View, Inc.
Comparative Income Statement
For the Years Ended December 31, 2015 and December 31, 2014

	2015	2014
Net Sales	$965,400	$1,028,600
Cost of Goods Sold	515,100	590,300
Gross Profit	$450,300	$ 438,300
Operating Expenses:
Selling	$142,000	$173,400
Administrative	150,200	182,400
Interest	29,300	34,100
Total Operating Expenses	$321,500	$389,900
Income Tax Expense	45,500	18,200
Total Expenses	$367,000	$ 408,100
Net Income	$ 83,300	$ 30,200

Graphic View, Inc.
Comparative Balance Sheet
December 31, 2015 and December 31, 2014

	2015	2014
Assets:
Cash	$ 45,100	$ 48,500
Accounts Receivable (net)	59,800	101,500
Merchandise Inventory	150,900	171,600
Property, Plant and Equipment (net)	710,500	808,800
Total Assets	$966,300	$1,130,400

Liabilities and Stockholders' Equity
Accounts Payable	$108,200	$ 151,600
Notes Payable (current)	70,000	70,000
Bonds Payable	154,000	280,000
Common Stock, $10 par	420,000	420,000
Retained Earnings	214,100	208,800
Total Liabilities and Stockholders' Equity	$966,300	$1,130,400

Additional Information:

All sales are on account. Account balances for December 31, 2013 for selected accounts are:

Common shares outstanding: 42,000 shares (2013, 2014, and 2015)
Dividends paid: $44,400 (2015) and $49,000 (2014)

REQUIRED:

a. What was the percentage increase or decrease in net sales from 2014 to 2015?

b. What was the percent increase or decrease in net property, plant and equipment from 2014 to 2015?

c. What was the percentage increase or decrease in income tax expense from 2014 to 2015?

QUESTION 2: Perform a horizontal analysis of the following company's balance sheet. Include both the amount and the percentage of change for each account.

Account	2016	2015	Change Amount	Change Percent
Current assets	$121,000	$100,000
Accounts receivable	117,000	125,000
Merchandise inventory	70,000	85,000
Current liabilities	63,500	50,000
Long-term liabilities	100,000	100,000
Common stock	50,000	50,000
Retained earnings	94,500	110,000

Reference no: EM131015183

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