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1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Use the minus sign to indicate a decrease in the "Increase/(Decrease)" columns. If required, round percentages to one decimal place. Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Line Item Description Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Other revenue Income before income tax expense Income tax expense Net income 2012 20Y1 $632,772 $532,000 (469,200) (340,000) $163,572 $192,000 $(66,380) $(45,000) (37,580) (28,000) $(103,960) $(73,000) $59,612 $119,000 2,642 2,200 $62,254 (17,400) $44,854 Check My Work 1 more Check My Work uses remaining. $121,200 (36,400) $84,800 Increase/ (Decrease) Amount 100,772 ✔ 129,200 28,428 X 21,380 > 9,580 ✓ 30,960 ✔ 59,388 X 442 ✓ 58,946 X 19,000 X 39,946 X Increase/ (Decrease) Percent 20.0 X % 38.0% 1.5 X % 50.0 X % 34.0 X % *~~"" 42.0 X % 50.0 X % 20.0 X % 50.0 X % 52.0 X % 47.0 X % Previous

1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Use the minus sign to indicate a decrease in the "Increase/(Decrease)" columns. If required, round percentages to one decimal place. Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Line Item Description Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Other revenue Income before income tax expense Income tax expense Net income 2012 20Y1 $632,772 $532,000 (469,200) (340,000) $163,572 $192,000 $(66,380) $(45,000) (37,580) (28,000) $(103,960) $(73,000) $59,612 $119,000 2,642 2,200 $62,254 (17,400) $44,854 Check My Work 1 more Check My Work uses remaining. $121,200 (36,400) $84,800 Increase/ (Decrease) Amount 100,772 ✔ 129,200 28,428 X 21,380 > 9,580 ✓ 30,960 ✔ 59,388 X 442 ✓ 58,946 X 19,000 X 39,946 X Increase/ (Decrease) Percent 20.0 X % 38.0% 1.5 X % 50.0 X % 34.0 X % *~~"" 42.0 X % 50.0 X % 20.0 X % 50.0 X % 52.0 X % 47.0 X % Previous

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Use the minus sign to indicate a decrease in the "Increase/(Decrease)" columns. If required, round percentages to one decimal place. Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Line Item Description Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Other revenue Income before income tax expense Income tax expense Net income 20Y1 20Y2 $632,772 (469,200) (340,000) $532,000 $163,572 $192,000 $ $(66,380) $(45,000) (37,580) (28,000) $(103,960) $59,612 2,642 $44,854 $(73,000) $119,000 $ $62,254 $121,200 $ (17,400) (36,400) $84,800 $ Check My Work 1 more Check My Work uses remaining. 2,200 Increase/ (Decrease) Amount 100,772 129,200 28,428 X 21,380 9,580 30,960 59,388 X 442 58,946 X 19,000 X 39,946 X Increase/ (Decrease) Percent 20.0 X % 38.0 ✓ % 1.5 X % 50.0 X % 34.0 X % 42.0 X % 50.0 X % 20.0 X % 50.0 X % 52.0 X % 47.0 X % Previous
Transcribed Image Text:1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Use the minus sign to indicate a decrease in the "Increase/(Decrease)" columns. If required, round percentages to one decimal place. Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Line Item Description Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Other revenue Income before income tax expense Income tax expense Net income 20Y1 20Y2 $632,772 (469,200) (340,000) $532,000 $163,572 $192,000 $ $(66,380) $(45,000) (37,580) (28,000) $(103,960) $59,612 2,642 $44,854 $(73,000) $119,000 $ $62,254 $121,200 $ (17,400) (36,400) $84,800 $ Check My Work 1 more Check My Work uses remaining. 2,200 Increase/ (Decrease) Amount 100,772 129,200 28,428 X 21,380 9,580 30,960 59,388 X 442 58,946 X 19,000 X 39,946 X Increase/ (Decrease) Percent 20.0 X % 38.0 ✓ % 1.5 X % 50.0 X % 34.0 X % 42.0 X % 50.0 X % 20.0 X % 50.0 X % 52.0 X % 47.0 X % Previous
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