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 your answers to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Line Item Description Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax expense Income tax expense Net income Current Year Amount $2,240,000 $2,000,000 (1,925,000) (1,750,000) $315,000 $250,000 $(152,500) $(125,000) (118,000) (100,000) $(270,500) $(225,000) $44,500 $25,000 (17,800) (10,000) $26,700 $15,000 Previous Increase Increase Year (Decrease) (Decrease) Amount Amount Percent % % % % % % % % %

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 your answers to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Line Item Description Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax expense Income tax expense Net income Current Year Amount $2,240,000 $2,000,000 (1,925,000) (1,750,000) $315,000 $250,000 $(152,500) $(125,000) (118,000) (100,000) $(270,500) $(225,000) $44,500 $25,000 (17,800) (10,000) $26,700 $15,000 Previous Increase Increase Year (Decrease) (Decrease) Amount Amount Percent % % % % % % % % %

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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