EX 14-5 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 $ 2,000,000 $ 2,240,000 (1,925,000) 5 315,000 S (152,500) Sales Cost of goods sold Gross profit Selling expenses Administrative expenses (1,750,000) $ 250,000 S (125,000) (118,000) S (270,500) $ (225,000) 25,000 Total operating expenses %24 Income before income tax expense %24 (17,800) 44,500 Income tax expense Net income %24 26,700 15,000 a. Prepare a comparative income statement with horizontal analysis, indicating the increase one decimal place. (decrease) for the current year when compared with the previous year. Round percentages to b. What conclusions can be drawn from the horizontal analysis?

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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Only EX 14-5 please and thank you!
EXCEL TEMPLATE
Current liabilities
2,000,000
3,400,000
3,680,000
Long-term liabilities
Common stock
Retained earnings
920,000
920,000
3,680,000
3,220,000
Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets
and each liability and stockholders' equity item as a percent of the total liabilities and stockhold-
ers' equity. Round percentages to one decimal place.
Obj. 2
EX 14-5 Horizontal analysis of the income statement
Income statement data for Winthrop Company for two recent years ended December 31 are as
Va. Net income
increase, 78.0%
follows:
Current Year
Previous Year
$ 2,000,000
(1,750,000)
24250,000
$ 2,240,000
(1,925,000)
$ 315,000
$ (152,500)
(118,000)
$ (270,500)
Sales
(X)
SHOW ME HOW EXCEL TEMPLATE
Cost of goods sold
Gross profit
$ (125,000)
Selling expenses
Administrative expenses
$ (225,000)
25,000
Total operating expenses
24
44,500
Income before income tax expense
%24
Income tax expense
(17,800)
%24
26,700
Net income
%24
15,000
a. Prepare a comparative income statement with horizontal analysis, indicating the increase
one decimal place.
(decrease) for the current year when compared with the previous year. Round percentages to
b.
What conclusions can be drawn from the horizontal analysis?
EX 14-6 Current position analysis
Va.1) Current year
Obj. 3
working capital,
fiscal years:
The following data were taken from the balance sheet of Nilo Company at the end of two recent
$1,090,000
Curent Year
Previous Year
Current assets:
Cash
Marketable securities
5 300,000
515,000
$ 391,000
354,000
426,000
Accounts and notes receivable (net)
634,000
Transcribed Image Text:EXCEL TEMPLATE Current liabilities 2,000,000 3,400,000 3,680,000 Long-term liabilities Common stock Retained earnings 920,000 920,000 3,680,000 3,220,000 Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and stockholders' equity item as a percent of the total liabilities and stockhold- ers' equity. Round percentages to one decimal place. Obj. 2 EX 14-5 Horizontal analysis of the income statement Income statement data for Winthrop Company for two recent years ended December 31 are as Va. Net income increase, 78.0% follows: Current Year Previous Year $ 2,000,000 (1,750,000) 24250,000 $ 2,240,000 (1,925,000) $ 315,000 $ (152,500) (118,000) $ (270,500) Sales (X) SHOW ME HOW EXCEL TEMPLATE Cost of goods sold Gross profit $ (125,000) Selling expenses Administrative expenses $ (225,000) 25,000 Total operating expenses 24 44,500 Income before income tax expense %24 Income tax expense (17,800) %24 26,700 Net income %24 15,000 a. Prepare a comparative income statement with horizontal analysis, indicating the increase one decimal place. (decrease) for the current year when compared with the previous year. Round percentages to b. What conclusions can be drawn from the horizontal analysis? EX 14-6 Current position analysis Va.1) Current year Obj. 3 working capital, fiscal years: The following data were taken from the balance sheet of Nilo Company at the end of two recent $1,090,000 Curent Year Previous Year Current assets: Cash Marketable securities 5 300,000 515,000 $ 391,000 354,000 426,000 Accounts and notes receivable (net) 634,000
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