27) Meranda Flower Corporation needs to develop a trend analysis for its sales and gross profit for the past three years to make decisions for the future. Compute the trend percentages with the information below and place your answers in the spaces provided.
Year 3Year 2Year 1
Net sales$1,600$1,100$ 800
Net sales trend percentages________________________
Gross profit trend percentages________________________
28) From the following, complete the common-size income statement for Isaiah’s Sporting Goods using net sales as the base. (Round to nearest tenth of a percent.)
Cost of Goods Sold650,000________
Gross Profit on Sales100,000________
29) From the following balance sheet for Bricks Corporation, compute the common-size balance sheet amounts. (Round all percentages to nearest tenth of a percent.)
Current Assets$ 40,000________
Plant and Equipment360,000________
Current Liabilities$ 100,000________
Total Liabilities and
Stockholders’ Equity $400,000________
30) Complete the following horizontal analysis comparative income statements of Websters Corporation.
Comparative Income Statements
For the Years Ended December 31, Years 1 and 2
Amt. of Percent of
Year 2 Year 1 Change Change
Cost of Goods Sold$36,000$30,000________________
Income Tax Expense1,9001,400________________
Net Income$17,600 $7,800________________
31) Define two types of comparative income statements and compare the information provided by them.