Assume the average cost of computer equipment fell 24.5 percent between 2016 and 2017. Let’s see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31, 2017. 2017 2016 Sales Revenues $ 100,300 $ 128,468 Cost of Goods Sold 61,700 77,081 Gross Profit 38,600 51,387 Selling, General, and Administrative Expenses 30,200 30,200 Interest Expense 586 480 Income Before Income Tax Expense 7,814 20,707 Income Tax Expense 4,708 6,737 Net Income $ 3,106 $ 13,970 Required: 1-a. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages. (Round your "Percentage" to 1 decimal place. Any decrease in amounts should be indicated with minus sign)
Assume the average cost of computer equipment fell 24.5 percent between 2016 and 2017. Let’s see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31, 2017. 2017 2016 Sales Revenues $ 100,300 $ 128,468 Cost of Goods Sold 61,700 77,081 Gross Profit 38,600 51,387 Selling, General, and Administrative Expenses 30,200 30,200 Interest Expense 586 480 Income Before Income Tax Expense 7,814 20,707 Income Tax Expense 4,708 6,737 Net Income $ 3,106 $ 13,970 Required: 1-a. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages. (Round your "Percentage" to 1 decimal place. Any decrease in amounts should be indicated with minus sign)
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