1. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages, for the income statement of Computer Tycoon Incorporated for the year ended December 31, 2018. 2-a. Conduct a vertical analysis by expressing each line as a percentage of total revenues. 2-b. Excluding income tax, interest, and operating expenses, did Computer Tycoon earn more gross profit per dollar of sales in 2018 compared to 2017? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages, for the income statement of Computer Tycoon Incorporated for the year ended December 31, 2018. Note: Decreases should be indicated by a minus sign. Round percentage values to 1 decimal place. COMPUTER TYCOON, INCORPORATED Income Statements For the Year Ended December 31 Sales Revenue Cost of Goods Sold Gross Profit Selling, General, and Administrative Expenses Interest Expense Income before Income Tax Expense Income Tax Expense Net Income 2018 $ $ 105,000 $ 127,500 62,500 73,500 42,500 54,000 36,500 38,000 550 500 5,450 15,500 1,500 5,500 3,950 $ 10,000 2017 < Req 1 Change in Dollars Req 2A > Percentage % % % % % % % %
1. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages, for the income statement of Computer Tycoon Incorporated for the year ended December 31, 2018. 2-a. Conduct a vertical analysis by expressing each line as a percentage of total revenues. 2-b. Excluding income tax, interest, and operating expenses, did Computer Tycoon earn more gross profit per dollar of sales in 2018 compared to 2017? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages, for the income statement of Computer Tycoon Incorporated for the year ended December 31, 2018. Note: Decreases should be indicated by a minus sign. Round percentage values to 1 decimal place. COMPUTER TYCOON, INCORPORATED Income Statements For the Year Ended December 31 Sales Revenue Cost of Goods Sold Gross Profit Selling, General, and Administrative Expenses Interest Expense Income before Income Tax Expense Income Tax Expense Net Income 2018 $ $ 105,000 $ 127,500 62,500 73,500 42,500 54,000 36,500 38,000 550 500 5,450 15,500 1,500 5,500 3,950 $ 10,000 2017 < Req 1 Change in Dollars Req 2A > Percentage % % % % % % % %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
5
Transcribed Image Text:1. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages,
for the income statement of Computer Tycoon Incorporated for the year ended December 31, 2018.
2-a. Conduct a vertical analysis by expressing each line as a percentage of total revenues.
2-b. Excluding income tax, interest, and operating expenses, did Computer Tycoon earn more gross profit per dollar of sales in 2018
compared to 2017?
Complete this question by entering your answers in the tabs below.
Req 1
Req 2A
Req 28
Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in
percentages, for the income statement of Computer Tycoon Incorporated for the year ended December 31, 2018.
Note: Decreases should be indicated by a minus sign. Round percentage values to 1 decimal place.
COMPUTER TYCOON, INCORPORATED
Income Statements
For the Year Ended December 31
Sales Revenue
Cost of Goods Sold
Gross Profit
Selling, General, and Administrative Expenses
Interest Expense
Income before Income Tax Expense
Income Tax Expense
Net Income
$
$
2018
< Req 1
2017
105,000 $ 127,500
62,500
73,500
42,500
54,000
36,500
38,000
550
500
5,450
15,500
1,500
5,500
3,950 $
10,000
Change in
Dollars
Req 2A >
Percentage
%
%
%
%
%
%
%
%
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