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A22-1 (edited) Horizontal and Vertical Analysis - Income Statement (L' Buslines Inc.'s Income statement (condensed) for two years is shown below. 2a. Prepare a horizontal percentage analysis of the income statement. Use a single- percent.) 31 December Gross sales sales returns Cost of goods sold Gross margin Expenses Selling expenses Administrative expenses Restructuring Interest Income tax expense Total other expenses Net income and comprehensive income 20X4 $ 550,000 (10,000) 540,000 (170,000) 20X5 $ 606,000 (6,000) 600,000 (280,000) BUSLINES INC Comparative Income Statement (Single Step) For the Years Ended 31 December 20X4 and 20X5 (Horizontal Percentage Analysis) 370,000 320,000 180,600 170,700 125,600 106,000 10,800 5,400 8,000 6,000 Revenues 14,400 7,300 Gross sales revenue 336,800 298,000 $ 33,200 $ 22,000 Less Returns Required: 1a. Prepare vertical percentage analysis of the income statement. (Round final answers to BUSLINES INC Comparative Income Statement For the Years Ended 31 December 20X4 and 20X5 (Vertical Percentage Analysis) 20X4 Amount Percent Net sales revenue Expenses Selling expenses Administrative expenses Restructuring Interest expenses Income tax expense Cost of goods sold 20X5 Amount Percent S Gross sales $550,000 % % Sales returns (10,000) 2 606,000 (6,000) 540,000 (2) 600,000 1 (1) Net income Cost of goods sold (170,000) 31 (280,000) Gross margin 370,000 (33) 320,000 (1) Expenses Selling expenses 180,600 33 170,700 28 Administrative expenses 125,600 23 106,000 18 Restructuring 10,800 2 8,000 1 Interest 5,400 1 6,000 1 Income tax expense 14,400 3 7,300 1 Total other expenses 336,800 62 298,000 Net income and comprehensive income $ 33,200 (95) $22,000 20X4 20X5 % %

A22-1 (edited) Horizontal and Vertical Analysis - Income Statement (L' Buslines Inc.'s Income statement (condensed) for two years is shown below. 2a. Prepare a horizontal percentage analysis of the income statement. Use a single- percent.) 31 December Gross sales sales returns Cost of goods sold Gross margin Expenses Selling expenses Administrative expenses Restructuring Interest Income tax expense Total other expenses Net income and comprehensive income 20X4 $ 550,000 (10,000) 540,000 (170,000) 20X5 $ 606,000 (6,000) 600,000 (280,000) BUSLINES INC Comparative Income Statement (Single Step) For the Years Ended 31 December 20X4 and 20X5 (Horizontal Percentage Analysis) 370,000 320,000 180,600 170,700 125,600 106,000 10,800 5,400 8,000 6,000 Revenues 14,400 7,300 Gross sales revenue 336,800 298,000 $ 33,200 $ 22,000 Less Returns Required: 1a. Prepare vertical percentage analysis of the income statement. (Round final answers to BUSLINES INC Comparative Income Statement For the Years Ended 31 December 20X4 and 20X5 (Vertical Percentage Analysis) 20X4 Amount Percent Net sales revenue Expenses Selling expenses Administrative expenses Restructuring Interest expenses Income tax expense Cost of goods sold 20X5 Amount Percent S Gross sales $550,000 % % Sales returns (10,000) 2 606,000 (6,000) 540,000 (2) 600,000 1 (1) Net income Cost of goods sold (170,000) 31 (280,000) Gross margin 370,000 (33) 320,000 (1) Expenses Selling expenses 180,600 33 170,700 28 Administrative expenses 125,600 23 106,000 18 Restructuring 10,800 2 8,000 1 Interest 5,400 1 6,000 1 Income tax expense 14,400 3 7,300 1 Total other expenses 336,800 62 298,000 Net income and comprehensive income $ 33,200 (95) $22,000 20X4 20X5 % %

FINANCIAL ACCOUNTING
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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A22-1 (edited) Horizontal and Vertical Analysis - Income Statement (L' Buslines Inc.'s Income statement (condensed) for two years is shown below. 2a. Prepare a horizontal percentage analysis of the income statement. Use a single- percent.) 31 December Gross sales sales returns Cost of goods sold Gross margin Expenses Selling expenses Administrative expenses Restructuring Interest Income tax expense Total other expenses Net income and comprehensive income 20X4 $ 550,000 (10,000) 540,000 (170,000) 20X5 $ 606,000 (6,000) 600,000 (280,000) BUSLINES INC Comparative Income Statement (Single Step) For the Years Ended 31 December 20X4 and 20X5 (Horizontal Percentage Analysis) 370,000 320,000 180,600 170,700 125,600 106,000 10,800 5,400 8,000 6,000 Revenues 14,400 7,300 Gross sales revenue 336,800 298,000 $ 33,200 $ 22,000 Less Returns Required: 1a. Prepare vertical percentage analysis of the income statement. (Round final answers to BUSLINES INC Comparative Income Statement For the Years Ended 31 December 20X4 and 20X5 (Vertical Percentage Analysis) 20X4 Amount Percent Net sales revenue Expenses Selling expenses Administrative expenses Restructuring Interest expenses Income tax expense Cost of goods sold 20X5 Amount Percent S Gross sales $550,000 % % Sales returns (10,000) 2 606,000 (6,000) 540,000 (2) 600,000 1 (1) Net income Cost of goods sold (170,000) 31 (280,000) Gross margin 370,000 (33) 320,000 (1) Expenses Selling expenses 180,600 33 170,700 28 Administrative expenses 125,600 23 106,000 18 Restructuring 10,800 2 8,000 1 Interest 5,400 1 6,000 1 Income tax expense 14,400 3 7,300 1 Total other expenses 336,800 62 298,000 Net income and comprehensive income $ 33,200 (95) $22,000 20X4 20X5 % %
Transcribed Image Text:A22-1 (edited) Horizontal and Vertical Analysis - Income Statement (L' Buslines Inc.'s Income statement (condensed) for two years is shown below. 2a. Prepare a horizontal percentage analysis of the income statement. Use a single- percent.) 31 December Gross sales sales returns Cost of goods sold Gross margin Expenses Selling expenses Administrative expenses Restructuring Interest Income tax expense Total other expenses Net income and comprehensive income 20X4 $ 550,000 (10,000) 540,000 (170,000) 20X5 $ 606,000 (6,000) 600,000 (280,000) BUSLINES INC Comparative Income Statement (Single Step) For the Years Ended 31 December 20X4 and 20X5 (Horizontal Percentage Analysis) 370,000 320,000 180,600 170,700 125,600 106,000 10,800 5,400 8,000 6,000 Revenues 14,400 7,300 Gross sales revenue 336,800 298,000 $ 33,200 $ 22,000 Less Returns Required: 1a. Prepare vertical percentage analysis of the income statement. (Round final answers to BUSLINES INC Comparative Income Statement For the Years Ended 31 December 20X4 and 20X5 (Vertical Percentage Analysis) 20X4 Amount Percent Net sales revenue Expenses Selling expenses Administrative expenses Restructuring Interest expenses Income tax expense Cost of goods sold 20X5 Amount Percent S Gross sales $550,000 % % Sales returns (10,000) 2 606,000 (6,000) 540,000 (2) 600,000 1 (1) Net income Cost of goods sold (170,000) 31 (280,000) Gross margin 370,000 (33) 320,000 (1) Expenses Selling expenses 180,600 33 170,700 28 Administrative expenses 125,600 23 106,000 18 Restructuring 10,800 2 8,000 1 Interest 5,400 1 6,000 1 Income tax expense 14,400 3 7,300 1 Total other expenses 336,800 62 298,000 Net income and comprehensive income $ 33,200 (95) $22,000 20X4 20X5 % %
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