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Gonser McGiller Corporation
Trial Balance (000's)










December 31,

2013
2012
2011

debit credit
debit credit
debit credit
Cash 125,000

300,000

300,000
Accounts Receivable 450,000

280,000

150,000
Merchandise Inventory 250,000

200,000

125,000
Prepaid Insurance 10,000

10,000

0
Building 1,800,000

1,500,000

1,500,000
Accum. Depreciation
100,000

90,000

80,000
Equipment 200,000

200,000

200,000
Accum. Depreciation
100,000

80,000

60,000
Notes Payable
50,000

0

0
Accounts Payable
225,000

80,000

75,000
Retained Earnings
715,000

570,000

400,000
Capital Stock
1,500,000

1,500,000

1,470,000
Sales
1,000,000

800,000

600,000
Sales Returns & Allow. 80,000

25,000

10,000
Sales Discounts 15,000

5,000

5,000
Cost of Goods Sold 350,000

250,000

100,000
Advertising 35,000

25,000

15,000
Sales Salaries 60,000

45,000

40,000
Delivery Expense 10,000

5,000

5,000
Administrative Salaries 120,000

80,000

40,000
Depreciation Expense 30,000

30,000

30,000
Rent 40,000

40,000

40,000
Postage 30,000

25,000

20,000
Insurance Expense 20,000

25,000

25,000
Income Taxes 65,000

75,000

80,000

3,690,000 3,690,000
3,120,000 3,120,000
2,685,000 2,685,000


















REQUIRED:







1. PREPARE A COMPARATIVE MULTI-STEP INCOME STATEMENT FOR THESE THREE YEARS. INCLUDE
         VERTICAL ANALYSIS i.e. SHOW EACH AMOUNT ALSO AS A % OF SALES. INCLUDE THE
         EARNINGS PER SHARE (EPS) FOR EACH YEAR. THERE WERE 100,000 SHARES OF COMMON STOCK
         ISSUED AND OUTSTANDING.















2. WHAT SEEMS TO BE HAPPENING TO THE COMPANY'S OPERATING RESULTS? WHY? USE
        WHATEVEVER RATIOS ARE RELEVANT TO EMPHASIZE YOUR CONCLUSION.

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