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 $536,800 $440,000 22 V % 96,800 Sales Cost of merchandise sold 444,000 370,000 74,000 20 $92,800 $70,000 22,800 V 32 X % Gross profit Selling expenses $25,760 $23,000 $ 2,760 12 22,800 19,000 3,800 V 20 Administrative expenses $48,560 $42,000 6,560 15 X % Total operating expenses Income before income tax expense $44,240 $28,000 16.240 58 17,700 11,200 6,500 V 58.03 X % Income tax expense >>>> >>
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 $536,800 $440,000 22 V % 96,800 Sales Cost of merchandise sold 444,000 370,000 74,000 20 $92,800 $70,000 22,800 V 32 X % Gross profit Selling expenses $25,760 $23,000 $ 2,760 12 22,800 19,000 3,800 V 20 Administrative expenses $48,560 $42,000 6,560 15 X % Total operating expenses Income before income tax expense $44,240 $28,000 16.240 58 17,700 11,200 6,500 V 58.03 X % Income tax expense >>>> >>
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

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.
Winthrop Company
Comparative Income Statement
For the Years Ended December 31
Current
Previous
Increase
Increase
year
year
(Decrease)
(Decrease)
Amount
Amount
Amount
Percent
Sales
$536,800
$440,000 $
96,800
22 %
Cost of merchandise sold
444,000
370,000
74,000
Gross profit
$92,800
$70,000 $
22,800
32
X%
Selling expenses
$25,760
$23,000 $
2,760
12
Administrative expenses
22,800
19,000
3,800
20
Total operating expenses
$48,560
$42,000 $
6,560
15
Income before income tax expense
$44,240
$28,000 $
16,240
58
%
17,700
11,200
6,500
58.03
Income tax expense
$26,540
$16,800 S
9,740
57.97
Net income
20

Transcribed Image Text:Horizontal Analysis of the Income Statement
Income statement data for Winthrop Company for two recent years ended December 31 are as follows:
Current Year
Previous Year
Sales
$536,800
$440,000
Cost of merchandise sold
444,000
370,000
Gross profit
$92,800
$70,000
Selling expenses
$25,760
$23,000
Administrative expenses
22,800
19,000
Total operating expenses
$48,560
$42,000
Income before income tax expense
$44,240
$28,000
Income tax expenses
17,700
11,200
Net income
$26,540
S16,800
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
Increase
Increase
(Decrease)
Previous
year
year
(Decrease)
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