Exercise 14-6 Horizontal Analysis Great Oaks FurnitureDecember 31 Balance Sheets20212020 Assets Current Assets Cash$41,200$53,000 Accounts receivable570,000443,000 Inventory5,586,4004,841,000 Prepaid expenses83,80078,000 Total current assets6,281,4005,415,000 Building and equipment, net1,097,0001,095,000 Total assets$7,378,400$6,510,000 Liabilities and Stockholders' equity Current liabilities Accounts payable$604,000$624,000 Bank loan payable679,000625,000 Other accrued payables213,000313,000 Total current liabilities1,496,0001,562,000 Long-term debt1,729,0001,797,000 Total liabilities3,225,0003,359,000 Stockholders' equity Common stock1,359,0001,359,000 Retained earnings2,794,4001,792,000 Total stockholders' equity4,153,4003,151,000 Total liab. and stockholders' equity$7,378,400$6,510,000 Great Oaks FurnitureYear Ended December 31 Statements of Earnings20212020 Net sales$5,568,000$5,253,000 Cost of goods sold2,840,0002,627,000 Gross margin2,728,0002,626,000 Operating expenses: Selling expenses501,000630,000 General and admin. expenses835,000788,000 Total operating expenses1,336,0001,418,000 Operating income1,392,0001,208,000 Interest expense139,000158,000 Income before taxes1,253,0001,050,000 Income taxes250,600210,000 Net income$1,002,400$840,000 Required The following information for Great Oaks Furniture, a retail furniture and design firm, relates to exercises 14-6 through 14-11. Perform a horizontal analysis of the balance sheets and income statements for Great Oaks Furniture. Highlight changes at are greater than 10%.
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