come statements for Rooney Company for Year 3 and Year 4 follow: ROONEY COMPANY Income Statements Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income Year 4 $201,700 143,800 21,300 12,800 3, 400 $181,300 20,400 6,000 $ 14, 400 Year 3 $181,700 121, 800 19, 300 14,800 5,400 $161,300 20,400 4,000 $ 16,400 Required Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. - Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. Complete this question by entering your answers in the tabs below.
come statements for Rooney Company for Year 3 and Year 4 follow: ROONEY COMPANY Income Statements Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income Year 4 $201,700 143,800 21,300 12,800 3, 400 $181,300 20,400 6,000 $ 14, 400 Year 3 $181,700 121, 800 19, 300 14,800 5,400 $161,300 20,400 4,000 $ 16,400 Required Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. - Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. Complete this question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Sd
Subject: acounting
Transcribed Image Text:Income statements for Rooney Company for Year 3 and Year 4 follow:
ROONEY COMPANY
Income Statements
Sales
Cost of goods sold
Selling expenses
Administrative expenses
Interest expense
Total expenses
Income before taxes -
Income taxes expense
Net income
Year 4
$201, 700
143, 800
Required A
21,300
12,800
3,400
Required B
Year 3
$181, 700
121, 800
19, 300
14,800
5,400
$181,300
20,400
6,000
$ 14,400 $ 16,400
Required
a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4.
b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.
$161,300
20,400
4,000
Complete this question by entering your answers in the tabs below.
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