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Home / Questions / Data for the most recent four fiscal years of Burleigh Falls Corp. are given below: 2011

Data for the most recent four fiscal years of Burleigh Falls Corp. are given below: 2011

 Data for the most recent four fiscal years of Burleigh Falls Corp. are given below:


Net sales$83,000$75,000$67,000$60,000

Cost of goods sold34,00032,00030,00026,000

Gross margin$49,000$43,000$37,000$34,000

Operating expenses26,00022,00019,00014,000

Net income$23,000$21,000$18,000$20,000


a. Prepare an analysis showing the trend percentages for the four-year period using 2008 as the                         base year.

b. What do the trend percentages indicate regarding Burleigh Falls Corp.'s income statement data?

21) Following is a comparative balance sheet for Barking Shark International Corporation:

Barking Shark International Corporation

Balance Sheet

December 31, 2011 and 2010


Current assets

Cash$ 10,000$ 5,000

Short-term investments7,00010,000

Accounts receivable, net30,00023,000


Prepaid expenses4,0003,000

Total current assets$ 88,000$ 76,000

Property, plant, and equipment, net33,30035,000

Other assets27,00022,500

Total assets$148,300$133,500

Current liabilities

Short-term borrowings$ 28,400$ 13,900

Accounts payable20,00022,500

Total current liabilities$48,400$36,400

Long-term debt37,50033,000

Total liabilities$85,900$69,400

Shareholders' equity

Common shares$20,000$20,000

Retained earnings42,40044,100

Total shareholders' equity$62,400$64,100

Total liabilities and shareholders'



a. Calculate and show the percentages that would appear in a horizontal analysis for this                            balance sheet.

b. Indicate any positive or negative developments from one year to the next.

22) Prepare a horizontal analysis for 2011 using the information provided by Rat Rack Incorporated below.  What do these numbers tell you about Rat Rack's 2011 year?   Using 2009 as the base year for Rat Rack prepare the trend percentages for the three year period 2009-2010.  What do these trend percentages indicate about Rat Rack?


Net sales$98,000$88,000$89,000

Cost of goods sold44,00035,00038,000

Gross margin$54,000$53,000$51,000

Operating expenses32,00031,00030,000

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