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

Gross profit750400250


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.)


Amount Percent

Net Sales$750,000________

Cost of Goods Sold650,000________

Gross Profit on Sales100,000________

Operating Expenses60,000________

Net Income40,000________


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________

   Total Assets$400,000________


Current Liabilities$ 100,000________

Long-term Liabilities180,000________

Common Stock80,000________

Retained Earnings40,000________

   Total Liabilities and

   Stockholders’ Equity $400,000________

30) Complete the following horizontal analysis comparative income statements of Websters Corporation.


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

Net Sales$75,000$50,000________________


   Cost of Goods Sold$36,000$30,000________________

   Operating Expense17,0009,000________________

   Interest Expense2,5001,800________________

   Income Tax Expense1,9001,400________________

Total Expenses$57,400$42,200________________

Net Income$17,600 $7,800________________


31) Define two types of comparative income statements and compare the information provided by them.



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