Comparative income statements for Pearle Company are provided: Required: Perform a horizontal analysis of Pearle Company's income statement by computing horizontal percentages for each item. Note: Round your answers to 1 decimal place. Sales Less cost of goods sold Gross margin Less operating expenses Income before taxes Income taxes Net income Pearle Company Comparitive Income Statement Years Ended December 31, Year 2 $ $ Year 1 600,000 $ 539,700 361,650 178,050 103,770 74,280 388,700 211,300 113,950 97,350 42,440 54,910 $ 33,412 40,868 Percentage Change 90.0 % % % % % % %

Comparative income statements for Pearle Company are provided: Required: Perform a horizontal analysis of Pearle Company's income statement by computing horizontal percentages for each item. Note: Round your answers to 1 decimal place. Sales Less cost of goods sold Gross margin Less operating expenses Income before taxes Income taxes Net income Pearle Company Comparitive Income Statement Years Ended December 31, Year 2 $ $ Year 1 600,000 $ 539,700 361,650 178,050 103,770 74,280 388,700 211,300 113,950 97,350 42,440 54,910 $ 33,412 40,868 Percentage Change 90.0 % % % % % % %

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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