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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. 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 >>>> >>

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. 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: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
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)
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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