Question Details

The following information was taken from the financial statements of Larkin Company 



Ex. 1
Using the following selected items from the comparative balance sheet of Abbott Company,
illustrate horizontal and vertical analysis.
December 31, 2003 December 31, 2002
Accounts Receivable $ 840,000 $ 600,000
Inventory 975,000 780,000
Total Assets 4,000,000 2,500,000
Ex. 2
The following information was taken from the financial statements of Larkin Company:
2003 2002
Gross profit on sales ................................................................. $900,000 $840,000
Income before income taxes ..................................................... 280,000 230,000
Net income ............................................................................... 240,000 216,000
Net income as a percentage of net sales .................................. 8% 9%
Instructions
(a) Compute the net sales for each year.
(b) Compute the cost of goods sold in dollars and as a percentage of net sales for each year.
(c) Compute operating expenses in dollars and as a percentage of net sales for each year.
(Income taxes are not operating expenses).




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