A.Perform horizontal analysisand vertical analysis (for 2020only)on the income statement. In your answer please remember to indicate if it is an INCREASE or (DECREASE) and round your findings to ONE decimal place [e.g. -32.996% is - 33.0% or minus 33.0% or (33.0%). B. Comment on the significant changes disclosed by the comparative statement of comprehensive income. What has caused the changes to occur? C. Prepare a statement of retained earnings for the year ended June 30, 2020. (Retained earnings at July 1, 2019 were $58,000, dividends declared and paid during the financial year were $37,000. D. Explain how profits for the year ended June 30, 2019 were $126,700 yet Retained Earnings at July 1, 2019 were only $58,000.
A.Perform horizontal analysisand vertical analysis (for 2020only)on the income statement. In your answer please remember to indicate if it is an INCREASE or (DECREASE) and round your findings to ONE decimal place [e.g. -32.996% is - 33.0% or minus 33.0% or (33.0%). B. Comment on the significant changes disclosed by the comparative statement of comprehensive income. What has caused the changes to occur? C. Prepare a statement of retained earnings for the year ended June 30, 2020. (Retained earnings at July 1, 2019 were $58,000, dividends declared and paid during the financial year were $37,000. D. Explain how profits for the year ended June 30, 2019 were $126,700 yet Retained Earnings at July 1, 2019 were only $58,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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100%
A.Perform horizontal analysisand vertical analysis (for 2020only)on the income statement. In your answer please remember to indicate if it is an INCREASE or (DECREASE) and round your findings to ONE decimal place [e.g. -32.996% is - 33.0% or minus 33.0% or (33.0%).
B. Comment on the significant changes disclosed by the comparative statement of comprehensive income. What has caused the changes to occur?
C. Prepare a statement of
D. Explain how profits for the year ended June 30, 2019 were $126,700 yet Retained Earnings at July 1, 2019 were only $58,000.
Transcribed Image Text:The comparative income statement for the financial year ended June 30 for Monica Flamingo
Farms is as follows:
Monica Flamingo Farms
Comparative statement of comprehensive income
For the years ended 30 June
2020
2019
$
770,000
487,000
283,000
$
690,000
345,000
345,000
Sales Revenue
Less: Cost of Goods Sold
Gross Profit
Selling Expenses
Administrative expenses
Finance Expenses
Profit before income tax expense
97,000
71,000
9,000
106,000
31,800
74,200
82,000
79,000
3,000
181,000
54,300
126,700
Income tax expense
Profit after income tax expense
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