Administrative expenses 41400 30000 41400 3000030000100 38 Total operating

Administrative expenses 41400 30000 41400

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Administrative expenses 41,400 30,000 41400-30000/30000*100 = 38% Total operating expenses $93,900 $67,500 93900-67500/67500*100= 39.11% Income before income tax $21,600 $7,500 21600-7500/7500*100= 188% Income tax expense 10,800 2,700 10800-2700/2700*100= 300% Net income $10,800 $4,800 10800- 4800/4800*100=125% Required: 1. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for 2014 when compared with 2013. Round to one decimal place. 2. What conclusions can be drawn from the horizontal analysis?
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Question # 4. The current asset portion of American Eagle Outfitters, Inc.'s balance sheet is as follows (in $000s). January 28, 2012 January 29, 2011 Solution Current assets: Cash and cash equivalents $719,545 $667,593 719545- 667593/667593*100=51952 719545- 667593/667593*100=7.781% Short-term investments 25,499 67,102 25499-67102= (41603) 25499- 67102/67102*100=(66.99%) Merchandise inventory 378,426 301,208 378426-301208=77218 378426- 301208/301208*100=25.64% Accounts receivable 40,310 36,721 40310-36721=3589 40310- 36721/36721*100=9.77% Prepaid expenses and other 74,947 53,727 74947-53727= 21220 74947- 53727/53727*100=39.45% Deferred income taxes 48,761 48,059 48761-48059=702 48761- 48059/48059*100=1.46% Total current assets 1,287,488 1,174,410 1287488-1174410=113078 1287488- 1174410/1174410*100=9.63
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Required: Prepare a horizontal analysis of American Eagle's current assets. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.5%.) January 28, 2012 January 29, 2011 $ Change % Change Current assets: Cash and cash equivalents Short-term investments Merchandise inventory Accounts receivable Prepaid expenses and other Deferred income taxes Total current assets Question # 5. Korbin Company comparative income statements and balance sheets for years 20X4, 20X3, and 20X2 included the following items: Korbin Company - Comparative Income Statements
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  • Balance Sheet, Generally Accepted Accounting Principles, Gilmour Company

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