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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

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 40E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...
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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 Increase Current Previous Increase year year (Decrease) (Decrease) Amount Amount Amount Percent $611,000 $470,000 $ 520,700 410,000 $90,300 $27,600 24,320 $51,920 $38,380 15,400 $22,980 $60,000 $23.000 19,000 $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 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 gross
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. 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 Increase Current Previous Increase year year (Decrease) (Decrease) Amount Amount Amount Percent $611,000 $470,000 $ 520,700 410,000 $90,300 $27,600 24,320 $51,920 $38,380 15,400 $22,980 $60,000 $23.000 19,000 $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 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 gross
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