59 826 S A Caliber (Body) 6 7 Sales 8 Cost of goods sold (C7-871/C7 Income statements for Burch Company for Year 3 and Year 4 follow. BURCH COMPANY Income Statements 9 Selling expenses 10 Administrative expenses Year 4 BUb $240,000 180,000 26,000 12,000 7,500 225,500 14,500 1,200 $13,300 Year 3 $200,000 124,000 20,000 18,000 8,000 170,000 30,000 D 3,000 $27,000 119 G H 11 Interest expense 12 Total expenses 13 Income before taxes 14 Income taxes expense 15 Net income 16 17 Required 18 a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. 19 b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. 20 Note: Use cell references cell A4 to C15 from the given information to complete this question. For both requirements, round your 21 answers to 1 decimal place. (.e., 0.234 should be entered as 23.4). 22. Wrap
59 826 S A Caliber (Body) 6 7 Sales 8 Cost of goods sold (C7-871/C7 Income statements for Burch Company for Year 3 and Year 4 follow. BURCH COMPANY Income Statements 9 Selling expenses 10 Administrative expenses Year 4 BUb $240,000 180,000 26,000 12,000 7,500 225,500 14,500 1,200 $13,300 Year 3 $200,000 124,000 20,000 18,000 8,000 170,000 30,000 D 3,000 $27,000 119 G H 11 Interest expense 12 Total expenses 13 Income before taxes 14 Income taxes expense 15 Net income 16 17 Required 18 a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. 19 b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. 20 Note: Use cell references cell A4 to C15 from the given information to complete this question. For both requirements, round your 21 answers to 1 decimal place. (.e., 0.234 should be entered as 23.4). 22. Wrap
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer in text form without image

Transcribed Image Text:59
826
S
A
Caliber (Body)
6
7 Sales
8 Cost of goods sold
(C7-871/C7
Income statements for Burch Company for Year 3 and Year 4 follow.
BURCH COMPANY
Income Statements
9 Selling expenses
10 Administrative expenses
Year 4
BUb
$240,000
180,000
26,000
12,000
7,500
225,500
14,500
1,200
$13,300
Year 3
$200,000
124,000
20,000
18,000
8,000
170,000
30,000
D
3,000
$27,000
119
G
H
11 Interest expense
12 Total expenses
13 Income before taxes
14 Income taxes expense
15 Net income
16
17 Required
18 a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4.
19 b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.
20 Note: Use cell references cell A4 to C15 from the given information to complete this question. For both requirements, round your
21 answers to 1 decimal place. (.e., 0.234 should be entered as 23.4).
22.
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