A-6 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 CompanyComparative Income StatementFor the Years Ended December 31SalesCost of merchandise soldGross profitSelling expensesAdministrative expensesTotal operating expensesIncome before income tax expenseIncome tax expenseNet incomeCurrent Previous Increase Increaseyearyear (Decrease) (Decrease)Amount Amount Amount Percent$402,600 $330,000 $336,000 280,000$66,600$50,000$19,040$17,00016,80014,000$35,840 $31,000$30,760 $19,00012,3007,600$18,460$11,400%%%%%%%%%

ppHORIZONTAL ANALYSISHorizontal Analysis is one of the important analysis techniques for financial…

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 $ % % % % % % % % %

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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