Selected comparative financial statements of Cohorn Company follow:
|
COHORN COMPANY
Comparative Income Statement ($000)
For Years Ended December 31, 2000-2006
|
|
2006
|
2005
|
2004
|
2003
|
2002
|
2001
|
2000
|
|
Sales
|
$1,594
|
$1,396
|
$1,270
|
$1,164
|
$1,086
|
$1,010
|
$828
|
|
Cost of goods sold
|
1146
|
932
|
802
|
702
|
652
|
610
|
486
|
|
Gross profit
|
448
|
464
|
468
|
462
|
434
|
400
|
342
|
|
Operating expenses
|
340
|
266
|
244
|
180
|
156
|
154
|
128
|
|
Net income
|
$108
|
$198
|
$224
|
$282
|
$278
|
$246
|
$214
|
|
COHORN COMPANY
Comparative Balance Sheet ($000)
December 31, 2000-2006
|
|
2006
|
2005
|
2004
|
2003
|
2002
|
2001
|
2000
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash
|
$68
|
$88
|
$92
|
$94
|
$98
|
$96
|
$99
|
|
Accounts receivable, net
|
480
|
504
|
456
|
350
|
308
|
292
|
206
|
|
Merchandise inventory
|
1,738
|
1,264
|
1,104
|
932
|
836
|
710
|
515
|
|
Other current assets
|
46
|
42
|
24
|
44
|
38
|
38
|
19
|
|
Long-term investments
|
0
|
0
|
0
|
136
|
136
|
136
|
136
|
|
Plant and equipment, net
|
2,120
|
2,114
|
1,852
|
1,044
|
1,078
|
960
|
825
|
|
Total assets
|
$4,452
|
$4,012
|
$3,528
|
$2,600
|
$2,494
|
$2,232
|
$1,800
|
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
Current liabilities
|
$1,120
|
$942
|
$618
|
$514
|
$446
|
$422
|
$272
|
|
Long-term liabilities
|
1,194
|
1,040
|
1,012
|
470
|
480
|
520
|
390
|
|
Common stock
|
1,000
|
1,000
|
1,000
|
840
|
840
|
640
|
640
|
|
Other contributed capital
|
250
|
250
|
250
|
180
|
180
|
160
|
160
|
|
Retained earnings
|
888
|
780
|
648
|
596
|
548
|
490
|
338
|
|
Total liabilities and equ
|
$4,452
|
$4,012
|
$3,528
|
$2,600
|
$2,494
|
$2,232
|
$1,800
|
Required:
a. Compute trend percents for the individual items of both statements using 2000 as the base year.
b. Analyze and comment on the financial statements and trend percents from part a.