Hello,

I have a project in my acct'g class and I have all but finished the last two questions. I have read the chapter several times and it is not very self explanatory.

The questions are, (please advise me on what to do)

Express the income statement data in common size percents, express the balance sheet in trend percents with 2004 as the base year

and comment on significant relations revealed by the ratios and percents computed.

Sales . . . . . . . . . . . . . . . . . . . . . . $444,000 $340,000 $236,000
Cost of goods sold . . . . . . . . . . . 267,288 212,500 151,040
Gross profit . . . . . . . . . . . . . . . . 176,712 127,500 84,960
Selling expenses . . . . . . . . . . . . . 62,694 46,920 31,152
Administrative expenses . . . . . . . 40,137 29,920 19,470
Total expenses . . . . . . . . . . . . . . 102,831 76,840 50,622
Income before taxes . . . . . . . . . . 73,881 50,660 34,338
Income taxes . . . . . . . . . . . . . . . 13,764 10,370 6,962
Net income . . . . . . . . . . . . . . . . $ 60,117 $ 40,290 $ 27,376

this is the balance sheet

Assets
Current assets . . . . . . . . . . . . . . . $ 48,480 $ 37,924 $ 50,648
Long-term investments . . . . . . . . . 0 500 3,720
Plant assets, net . . . . . . . . . . . . . . . 90,000 96,000 57,000
Total assets . . . . . . . . . . . . . . . . . . $138,480 $134,424 $111,368
Liabilities and Equity
Current liabilities . . . . . . . . . . . . . . $ 20,200 $ 19,960 $ 19,480
Common stock . . . . . . . . . . . . . . . 72,000 72,000 54,000
Other contributed capital . . . . . . . 9,000 9,000 6,000
Retained earnings . . . . . . . . . . . . . 37,280 33,464 31,888
Total liabilities and equity . . . . . . . . $138,480 $134,424 $111,368

this is the balance sheet. totally lost:confused: