selected comparative financial statements of sugo company follow 648278

Selected comparative financial statements of Sugo Company follow.

SUGO COMPANY Comparative Income Statements For Years Ended December 31,2012 2006
($ thousands)	2012	2011	2010	2009	2008	2007	2006
Sales	$1,594	$1,396	$1,270	$1,164	$1,086	$1,010	$828
Cost of goods sold	1,146	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

SUGO COMPANY Comparative Balance Sheets December 31,2012 2006
($ thousands)	2012	2011	2010	2009	2008	2007	2006
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 assets, 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 paid in capital	250	250	250	180	180	160	160
Retained earnings	888	780	648	596	548	490	338
Total liabilities and equity	$4,452	$4,012	$3,528	$2,600	$2,494	$2,232	$1,800

Required

1. Compute trend percents for all components of both statements using 2006 as the base year. (Round percents to one decimal.)

2. Analyze and comment on the financial statements and trend percents from part 1.