a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with theprevious year. If required, round to one decimal place.Winthrop CompanyComparative Income StatementFor the Years Ended December 31CurrentPreviousIncreaseIncreaseyearyear(Decrease)(Decrease)AmountAmountAmountPercentSales$536,800$440,000 $96,80022 %Cost of merchandise sold444,000370,00074,000Gross profit$92,800$70,000 $22,80032X%Selling expenses$25,760$23,000 $2,76012Administrative expenses22,80019,0003,80020Total operating expenses$48,560$42,000 $6,56015Income before income tax expense$44,240$28,000 $16,24058%17,70011,2006,50058.03Income tax expense$26,540$16,800 S9,74057.97Net income20 Horizontal Analysis of the Income StatementIncome statement data for Winthrop Company for two recent years ended December 31 are as follows:Current YearPrevious YearSales$536,800$440,000Cost of merchandise sold444,000370,000Gross profit$92,800$70,000Selling expenses$25,760$23,000Administrative expenses22,80019,000Total operating expenses$48,560$42,000Income before income tax expense$44,240$28,000Income tax expenses17,70011,200Net income$26,540S16,800a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with theprevious year. If required, round to one decimal place.Winthrop CompanyComparative Income StatementFor the Years Ended December 31CurrentIncreaseIncrease(Decrease)Previousyearyear(Decrease)

The question is based on the concept of Financial Accounting.

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 >>>> >>

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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