come statements for Franklin Company for Year 3 and Year 4 follow: FRANKLIN COMPANY Income atements Year 4 Year 3 Sales $201,300 $ 181, 300 Cost of goods sold 143, 600 121,600 Selling expenses 0,100 18, 100 Administrative expenses 12,500 14,500 Interest expense 3,900 5,900 Total expenses 80, 100 160, 100 Income before taxes 21,200 21,200 Income taxes expense 6, 400 3,600 Net income $ 4,800 $ 17,600 Required Perform a horizontal analysis, showing the percentage change in each income atement component between Year 3 and Year 4. Perform a vertical analysis, showing each income atement component as a percentage of sales for each year.

come statements for Franklin Company for Year 3 and Year 4 follow: FRANKLIN COMPANY Income atements Year 4 Year 3 Sales $201,300 $ 181, 300 Cost of goods sold 143, 600 121,600 Selling expenses 0,100 18, 100 Administrative expenses 12,500 14,500 Interest expense 3,900 5,900 Total expenses 80, 100 160, 100 Income before taxes 21,200 21,200 Income taxes expense 6, 400 3,600 Net income $ 4,800 $ 17,600 Required Perform a horizontal analysis, showing the percentage change in each income atement component between Year 3 and Year 4. Perform a vertical analysis, showing each income atement component as a percentage of sales for each year.

Name: Income statements for Franklin Company for Year 3 and Year 4 follow:
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Description: Income statements for Franklin Company for Year 3 and Year 4 follow: FRANKLIN COMPANY IncomeStatements Year 4 Year 3 Sales $ 201,300 $181, 300 Cost of goods sold 143, 600 121,600 Selling expenses20,100 18, 100 Administrative expenses 12,500 14,500 I

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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