eBook Show Me How Print Item Question Content Area Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31 are as follows: Current Year Previous Year Sales $800,100 $630,000 Cost of merchandise sold 669,600 540,000 Gross profit $130,500 $90,000 Selling expenses $38,610 $33,000 Administrative expenses 33,750 27,000 Total operating expenses $72,360 $60,000 Income before income tax expense $58,140 $30,000 Income tax expenses 23,300 12,000 Net income $34,840 $18,000 Question Content Area a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Winthrop CompanyComparative Income StatementFor the Years Ended December 31 Current year Amount Previous year Amount Increase (Decrease) Amount Increase (Decrease) Percent Sales $800,100 $630,000 $fill in the blank abc7a1faafd2071_1 fill in the blank abc7a1faafd2071_2% Cost of merchandise sold 669,600 540,000 fill in the blank abc7a1faafd2071_3 fill in the blank abc7a1faafd2071_4% Gross profit $130,500 $90,000 $fill in the blank abc7a1faafd2071_5 fill in the blank abc7a1faafd2071_6% Selling expenses $38,610 $33,000 $fill in the blank abc7a1faafd2071_7 fill in the blank abc7a1faafd2071_8% Administrative expenses 33,750 27,000 fill in the blank abc7a1faafd2071_9 fill in the blank abc7a1faafd2071_10% Total operating expenses $72,360 $60,000 $fill in the blank abc7a1faafd2071_11 fill in the blank abc7a1faafd2071_12% Income before income tax expense $58,140 $30,000 $fill in the blank abc7a1faafd2071_13 fill in the blank abc7a1faafd2071_14% Income tax expense 23,300 12,000 fill in the blank abc7a1faafd2071_15 fill in the blank abc7a1faafd2071_16% Net income $34,840 $18,000 $fill in the blank abc7a1faafd2071_17 fill in the blank abc7a1faafd2071_18%

eBook Show Me How Print Item Question Content Area Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31 are as follows: Current Year Previous Year Sales $800,100 $630,000 Cost of merchandise sold 669,600 540,000 Gross profit $130,500 $90,000 Selling expenses $38,610 $33,000 Administrative expenses 33,750 27,000 Total operating expenses $72,360 $60,000 Income before income tax expense $58,140 $30,000 Income tax expenses 23,300 12,000 Net income $34,840 $18,000 Question Content Area a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Winthrop CompanyComparative Income StatementFor the Years Ended December 31 Current year Amount Previous year Amount Increase (Decrease) Amount Increase (Decrease) Percent Sales $800,100 $630,000 $fill in the blank abc7a1faafd2071_1 fill in the blank abc7a1faafd2071_2% Cost of merchandise sold 669,600 540,000 fill in the blank abc7a1faafd2071_3 fill in the blank abc7a1faafd2071_4% Gross profit $130,500 $90,000 $fill in the blank abc7a1faafd2071_5 fill in the blank abc7a1faafd2071_6% Selling expenses $38,610 $33,000 $fill in the blank abc7a1faafd2071_7 fill in the blank abc7a1faafd2071_8% Administrative expenses 33,750 27,000 fill in the blank abc7a1faafd2071_9 fill in the blank abc7a1faafd2071_10% Total operating expenses $72,360 $60,000 $fill in the blank abc7a1faafd2071_11 fill in the blank abc7a1faafd2071_12% Income before income tax expense $58,140 $30,000 $fill in the blank abc7a1faafd2071_13 fill in the blank abc7a1faafd2071_14% Income tax expense 23,300 12,000 fill in the blank abc7a1faafd2071_15 fill in the blank abc7a1faafd2071_16% Net income $34,840 $18,000 $fill in the blank abc7a1faafd2071_17 fill in the blank abc7a1faafd2071_18%

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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Question Content Area

Horizontal Analysis of the Income Statement

Income statement data for Winthrop Company for two recent years ended December 31 are as follows:

	Current Year	Previous Year
Sales	$800,100		$630,000
Cost of merchandise sold	669,600		540,000
Gross profit	$130,500		$90,000
Selling expenses	$38,610		$33,000
Administrative expenses	33,750		27,000
Total operating expenses	$72,360		$60,000
Income before income tax expense	$58,140		$30,000
Income tax expenses	23,300		12,000
Net income	$34,840		$18,000

Question Content Area

a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place.

Winthrop CompanyComparative Income StatementFor the Years Ended December 31

	Current year Amount	Previous year Amount	Increase (Decrease) Amount	Increase (Decrease) Percent
Sales	$800,100	$630,000	$fill in the blank abc7a1faafd2071_1	fill in the blank abc7a1faafd2071_2%
Cost of merchandise sold	669,600	540,000	fill in the blank abc7a1faafd2071_3	fill in the blank abc7a1faafd2071_4%
Gross profit	$130,500	$90,000	$fill in the blank abc7a1faafd2071_5	fill in the blank abc7a1faafd2071_6%
Selling expenses	$38,610	$33,000	$fill in the blank abc7a1faafd2071_7	fill in the blank abc7a1faafd2071_8%
Administrative expenses	33,750	27,000	fill in the blank abc7a1faafd2071_9	fill in the blank abc7a1faafd2071_10%
Total operating expenses	$72,360	$60,000	$fill in the blank abc7a1faafd2071_11	fill in the blank abc7a1faafd2071_12%
Income before income tax expense	$58,140	$30,000	$fill in the blank abc7a1faafd2071_13	fill in the blank abc7a1faafd2071_14%
Income tax expense	23,300	12,000	fill in the blank abc7a1faafd2071_15	fill in the blank abc7a1faafd2071_16%
Net income	$34,840	$18,000	$fill in the blank abc7a1faafd2071_17	fill in the blank abc7a1faafd2071_18%

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