a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Sales Cost of merchandise sold Gross profit Selling expenses Winthrop Company Comparative Income Statement For the Years Ended December 31 Net income Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent $402,600 $330,000 336,000 280,000 $66,600 $50,000 $ $19,040 16,800 Administrative expenses Total operating expenses $35,840 Income before income tax expense $30,760 Income tax expense 12,300 $17,000 14,000 $31,000 $ $19,000 7,600 $18,460 $11,400 $ % % % % % % % % %
a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Sales Cost of merchandise sold Gross profit Selling expenses Winthrop Company Comparative Income Statement For the Years Ended December 31 Net income Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent $402,600 $330,000 336,000 280,000 $66,600 $50,000 $ $19,040 16,800 Administrative expenses Total operating expenses $35,840 Income before income tax expense $30,760 Income tax expense 12,300 $17,000 14,000 $31,000 $ $19,000 7,600 $18,460 $11,400 $ % % % % % % % % %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A-6
Transcribed Image Text:a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required,
round to one decimal place.
Winthrop Company
Comparative Income Statement
For the Years Ended December 31
Sales
Cost of merchandise sold
Gross profit
Selling expenses
Administrative expenses
Total operating expenses
Income before income tax expense
Income tax expense
Net income
Current Previous Increase Increase
year
year (Decrease) (Decrease)
Amount Amount Amount Percent
$402,600 $330,000 $
336,000 280,000
$66,600
$50,000
$19,040
$17,000
16,800
14,000
$35,840 $31,000
$30,760 $19,000
12,300
7,600
$18,460
$11,400
%
%
%
%
%
%
%
%
%
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