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 onedecimal place.SalesCost of merchandise soldGross profitSelling expensesWinthrop CompanyComparative Income StatementFor the Years Ended December 31Administrative expensesTotal operating expensesIncome before income tax expenseIncome tax expenseNet incomeprofit to beIncreaseCurrent Previous Increaseyearyear (Decrease) (Decrease)Amount Amount Amount Percent$611,000 $470,000 $520,700 410,000$90,300$27,60024,320$51,920$38,38015,400$22,980$60,000$23.00019,000$42,000$18,000 $7,200$10,800%%%%%%%%%b. The net income for Winthrop Company increased between years. This increase was the combined result of anin cost of merchandise sold. The cost of merchandise sold increased at athan the percentage increase in sales.in sales andpercentagerate than the increase in sales, thus causing the percentage increase in gross

Answer:- Income statement meaning:- A financial statement that outlines the company's revenue and…

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 Administrative expenses Total operating expenses Income before income tax expense Income tax expense Net income profit to be Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent $611,000 $470,000 $ 520,700 410,000 $90,300 $60,000 $27,600 $23,000 24,320 19,000 $51,920 $38,380 15,400 $22,980 $42,000 $18,000 $ 7,200 $10,800 % % % % % % % % b. The net income for Winthrop Company increased between years. This increase was the combined result of an in cost of merchandise sold. The cost of merchandise sold increased at a than the percentage increase in sales. in sales and percentage rate than the increase in sales, thus causing the percentage increase in gro

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 Administrative expenses Total operating expenses Income before income tax expense Income tax expense Net income profit to be Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent $611,000 $470,000 $ 520,700 410,000 $90,300 $60,000 $27,600 $23,000 24,320 19,000 $51,920 $38,380 15,400 $22,980 $42,000 $18,000 $ 7,200 $10,800 % % % % % % % % b. The net income for Winthrop Company increased between years. This increase was the combined result of an in cost of merchandise sold. The cost of merchandise sold increased at a than the percentage increase in sales. in sales and percentage rate than the increase in sales, thus causing the percentage increase in gro

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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