Homework Help is Here – Start Your Trial Now!
Business
Accounting
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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Please answer in text form without image
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
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. Wrap
Expert Solution
steps

Step by step

Solved in 3 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS