Comparative Financial Statements for Larson Company,prepared on December 31 Are

question 61

Essay

Comparative financial statements for Larson Company,prepared on December 31 are shown below:
$\begin{array}{l}\begin{array}{lll} \text {Income Statement}\\ \text {Sales revenue}\\ \text {Cost of goods sold}\\ \text {Gross profit}\\ \text {Operating expenses and interest expense}\\ \text {Pretax income}\\ \text {Income tax}\\ \text {Net income}\\\\ \text {Balance Sheet}\\ \text {Cash}\\ \text {Accounts receivable (net)}\\ \text {Inventoiy}\\ \text {Operational assets (net)}\\\\\text {Current liabilities (no interest)}\\\text {Long-term liabilities ( \( 10 \% \) interest)}\\\text {Common stock (par \$5)}\\\text {Retained earnings}\\\end{array}\begin{array}{lll}2012 \\\$ 190,000 \\\underline{112,000} \\ 78,000 \\\underline{56,000} \\22,000 \\\underline{8,000 }\\\underline{ 14.000}\\\\ \\\$ 4,000 \\14,000 \\40,000 \\\underline{45,000} \\ \underline{103,000} \\\$ 16,000 \\45,000 \\30,000 \\\underline{12,000} \\ \underline{103,000}\end{array}\begin{array}{lll}2011 \\\$ 167,000 \\\underline{100,000} \\67,000 \\\underline{53,000} \\14,000 \\\underline{4,000 }\\\underline{ 10,000 }\\\\ \\\$ 7,000 \\18,000 \\34,000 \\\underline{38,000} \\\underline{ 97,000}\\\$ 17,000 \\45,000 \\30,000 \\\underline{5,000} \\\underline{97,000}\end{array}\end{array}$
Required:
Assume that one-third of sales are on credit and that cash dividends of $3,000 were declared and paid in 2012.Then,complete a percentage change income statement and a percentage change balance sheet for the company,using both amount and percentage changes from 2011 to 2012.

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Definitions:

Evolutionary Psychology

A theoretical approach in psychology that explains human thoughts and behaviors as adaptations, evolved to solve problems of survival and reproduction.

Evolutionary Psychology

A theoretical approach in psychology that seeks to explain mental and psychological traits—such as memory, perception, or language—as adaptations, i.e., as the functional products of natural selection.

Evolutionary Psychology

A theoretical approach in psychology that examines mental and psychological traits—such as memory, perception, or language—as adaptations, i.e., as the functional products of natural selection.

Freud's Theory

Refers to Sigmund Freud's psychoanalytic theory, which emphasizes unconscious processes and childhood experiences in shaping personality and behavior.