Exercise 14-3A (Algo) Horizontal and vertical analysis LO 14-1 Income statements for Rundle Company for Year 3 and Year 4 follow: Sales Cost of goods sold Selling expenses BURCH COMPANY Income Statements Year 4 $ 201,400 143,000 Year 3 $ 181,400 121,000 20,400 12,700 18,400 14,700 3,600 5,600 $ 179,700 $ 159,700 21,700 6,400 21,700 3,300 $ 15,300 $ 18,400 Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income Required a. Perform a horizontal analysis, showing the percentage change in each Income statement component between Year 3 and Y b. 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. Required A Required B 4. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year Note: Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (ie., .234 should be entered as 23.4). RUNDLE COMPANY Horizontal Analysis of Income Statements Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (loss) Percentage Change over Year 3 96 96 Required B > Show less A
Exercise 14-3A (Algo) Horizontal and vertical analysis LO 14-1 Income statements for Rundle Company for Year 3 and Year 4 follow: Sales Cost of goods sold Selling expenses BURCH COMPANY Income Statements Year 4 $ 201,400 143,000 Year 3 $ 181,400 121,000 20,400 12,700 18,400 14,700 3,600 5,600 $ 179,700 $ 159,700 21,700 6,400 21,700 3,300 $ 15,300 $ 18,400 Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income Required a. Perform a horizontal analysis, showing the percentage change in each Income statement component between Year 3 and Y b. 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. Required A Required B 4. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year Note: Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (ie., .234 should be entered as 23.4). RUNDLE COMPANY Horizontal Analysis of Income Statements Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (loss) Percentage Change over Year 3 96 96 Required B > Show less A
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 14-3A (Algo) Horizontal and vertical analysis LO 14-1
Income statements for Rundle Company for Year 3 and Year 4 follow:
Sales
Cost of goods sold
Selling expenses
BURCH COMPANY
Income Statements
Year 4
$ 201,400
143,000
Year 3
$ 181,400
121,000
20,400
12,700
18,400
14,700
3,600
5,600
$ 179,700
$ 159,700
21,700
6,400
21,700
3,300
$ 15,300
$ 18,400
Administrative expenses
Interest expense
Total expenses
Income before taxes
Income taxes expense
Net income
Required
a. Perform a horizontal analysis, showing the percentage change in each Income statement component between Year 3 and Y
b. 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.
Required A Required B
4.
Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year
Note: Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (ie., .234 should be
entered as 23.4).
RUNDLE COMPANY
Horizontal Analysis of Income Statements
Sales
Cost of goods sold
Selling expenses
Administrative expenses
Interest expense
Total expenses
Income before taxes
Income taxes expense
Net income (loss)
Percentage Change
over Year 3
96
96
Required B >
Show less A
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