Westside Greenhouse Comparative Balance Sheet For the Years Ended December 31, 2005 and 2004 Name Date Problem 12-10 Preparing Comparative Financial Statements Class Increase (Decrease) 2005 over 2004 Dollars Percent 2005 2004 Percentage of Total Assets or Liab. & Stock. Equity 2005 2004 Assets Current Assets: Cash in Bank $17,250 $12,300 4950 Notes Receivable 6,000 Marketable Securities 6,600 Accounts Receivable (Net) 80,550 Merchandise Inventory 121,800 Prepaid Expenses 2,100 2,000 Total Current Assets 327,700 305,225 Property, Plant, and Equipment: Equipment (Net) 77,100 81,200 Building (Net) 160,450 165,450 Land 50,000 50,000 Total Prop., Plant, and Equip. 287,550 296,650 Total Assets $615,250 $601.875 40.24 2.8 (600) (9.09% .98% 1.10% 16.61% 16.25% 13.09% 0.00% 84,325 (3,775) (4.48%) 14.01% 21,800 21.80% 19.80% 16.61% 5.00% 0.34% 0.33% 100 22,475 7.36% 53.26% 50.71% (4.100) (5.05% 12.53% 13.49% (5,000) (3.02%) 26.08% 27.49% 0.00% 8.13% 8.31% (9,100) (3.07% $13,375 2.22% 46.74% 49.29% 100.00% 100.00% 2.04 Liabilities Current Liabilities: Accounts Payable $32,250 $25,000 $7,250 29.00% 5.24% 4.15% Salaries Payable 3,000 2,400 Total Current Liabilities 35,250 27,400 Long-Term Liabilities: Mortgage Payable 170,000 182,000 Total Liabilities 205,250 209,400 600 25.00% 0.49% 0,40% 7,850 28.65% 5.73% 4.55% (12,000) (6.59% 27.63% 30,24% (4,150) (1.98% 33.36% 34.79% 396 Chapter 12 Copyright © Glencoe/McGraw-Hill. All rights reserved. Name Problem 12-10 (continued) Westside Greenhouse Comparative Balance Sheet (continued) For the Years Ended December 31, 2005 and 2004 Increase (Decrease) 2005 over 2004 Percent Percentage of Total Assets or Liab. & Stock. Equity 2005 2004 0.00% 48.76% 49.84% 0.00% 8.13% 8.31% 0.00% 56.89% 58.15% 17,525 41.26% 9.75% 7.06% 17,525 4.47% 66.64% 65.21% $13,375 2.22% 100.00% 100.00% 2005 2004 Dollars Stockholders' Equity Paid-in Capital: Common Stock Paid-in Cap. in Exc. of Par 50,000 50,000 0 Total Paid-in Capital 350,000 350,000 0 Retained Earnings 60,000 42,475 Total Stockholders' Equity 410,000 392,475 Total Liab. and Stock. Equity $615,250 $601,875 Copyright Glencoe/McGraw-Hill. All rights reserved. Chapter 12 397 Date Class Westside Greenhouse Comparative Income Statement For the Years Ended December 31, 2005 and 2004 Name Problem 12-10 (concluded) Date Class Increase (Decrease) 2005 over 2004 Percentage of Net Sales 2005 2004 Dollars Percent 2005 2004 Revenue: Net Sales $705,000 $655,500 $49,500 7.55% 100.00% 100.00% Cost of Merchandise Sold: Merchandise Inv., Jan. 1 96,000 4,000 4.17% 14.18% 14.65% Net Purchases 460,200 438,000 Merchandise Avail. for Sale 560,200 534,000 216, 22,200 6,200 5,07% 4.91% 65.28% 79.46% Ld6.82% 81.46% Merchandise Inv., Dec. 31 121,800 21,800 21.80% 17.28% 15.26% Cost of Merchandise Sold 438,400 434,000 4,400 1.01% 62.18% (6,21% Gross Profit on Sales 266,600 221,500 45,100 20.36% 37.82% 33.79% Operating Expenses: Selling Expenses 139,050 Administrative Expenses 69,300 68,000 Total Operating Expenses 208,350 193,000 Operating Income 58,250 28,500 125,000 14,050 11.24% 19.72% 19.07% 1,300 1.91% 9.83% 10.37% 15,350 7.95% 29.55% 29.44% 29,750 104.39% 8.26% 4.35% Other Expenses: Interest Expense 7,800 6,000 1,800 Net Income Before Inc. Тах 50,450 22,500 Federal Income Tax 12,600 3,400 Net Income $ 37,850 $ 19,100 30.00% 1.11% 27,950 124.22% 7.16% 3.4.3% 9,200 270.59% 1.79% 0.52% $18,750 98.17% 5.37% 2.91% 0.92% Analyze: 398 Chapter 12 Copyright © Glencoe/McGraw-Hill. All rights reserved.