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 Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent Sales $660,000 $500,000 $ % Cost of merchandise sold 554,700 430,000 Gross profit $105,300 $70,000 % Selling expenses $31,720 $26,000 $ Administrative expenses 28,600 22,000 Total operating expenses $60,320 $48,000 $ % Income before income tax expense $44,980 $22,000 % Income tax expense 18,000 8,800 Net income $26,980 $13,200 %

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 Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent Sales $660,000 $500,000 $ % Cost of merchandise sold 554,700 430,000 Gross profit $105,300 $70,000 % Selling expenses $31,720 $26,000 $ Administrative expenses 28,600 22,000 Total operating expenses $60,320 $48,000 $ % Income before income tax expense $44,980 $22,000 % Income tax expense 18,000 8,800 Net income $26,980 $13,200 %

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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