Exercise 13-1A (Algo) Horizontal analysis LO 13-1 Munoz Corporation reported the following operating results for two consecutive years: Required a. Compute the percentage changes in Munoz Corporation's Income statement components between the two years. Note: Negative amounts should be indicated by a minus sign. Round your answers to 1 decimal place. (I.e., 0.234 should be entered as 23.4). MUNOZ CORPORATION Income Statements Year 3 Year 2 Percentage Change Sales $ 1,298,000 $1,001,500 % Cost of goods sold 798,270 600,900 Gross margin 499,730 400,600 Operating expenses 304,000 197,000 Income before taxes 195,730 203,600 Income taxes 61,800 52,100 Net income (loss) $ 133,930 S 151,500 %
Exercise 13-1A (Algo) Horizontal analysis LO 13-1 Munoz Corporation reported the following operating results for two consecutive years: Required a. Compute the percentage changes in Munoz Corporation's Income statement components between the two years. Note: Negative amounts should be indicated by a minus sign. Round your answers to 1 decimal place. (I.e., 0.234 should be entered as 23.4). MUNOZ CORPORATION Income Statements Year 3 Year 2 Percentage Change Sales $ 1,298,000 $1,001,500 % Cost of goods sold 798,270 600,900 Gross margin 499,730 400,600 Operating expenses 304,000 197,000 Income before taxes 195,730 203,600 Income taxes 61,800 52,100 Net income (loss) $ 133,930 S 151,500 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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vi.6
Transcribed Image Text:Exercise 13-1A (Algo) Horizontal analysis LO 13-1
Munoz Corporation reported the following operating results for two consecutive years:
Required
a. Compute the percentage changes in Munoz Corporation's Income statement components between the two years.
Note: Negative amounts should be indicated by a minus sign. Round your answers to 1 decimal place. (l.e., 0.234 should be
entered as 23.4).
MUNOZ CORPORATION
Income Statements
Percentage
Year 3
Year 2
Change
Sales
Cost of goods sold
Gross margin
Operating expenses
Income before taxes
$
1,298,000 S
1,001,500
%
798,270
600,900
499,730
400,600
304,000
197,000
195,730
203,600
Income taxes
61,800
52,100
Net income (loss)
S
133,930 S
151,500
%
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