For 20Y2, McDade Company reported a decline in net income. At the end of the year, Marsha Mellow, the president, is presented with the following condensed comparative income statement: McDade Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 2012 $484,457 345,600 $138,857 $48,600 28,800 $77,400 $61,457 2,234 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue Income before income tax Income tax expense Net income $63,691 17,800 $45,891 20Y1 $427,000 270,000 $157,000 $36,000 23,000 $59,000 $98,000 1,800 $99,800 29,900 $69,900 Required: Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Round percentages to one decimal place. Use the minus sign to indicate a decrease in the "Difference" columns.

For 20Y2, McDade Company reported a decline in net income. At the end of the year, Marsha Mellow, the president, is presented with the following condensed comparative income statement: McDade Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 2012 $484,457 345,600 $138,857 $48,600 28,800 $77,400 $61,457 2,234 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue Income before income tax Income tax expense Net income $63,691 17,800 $45,891 20Y1 $427,000 270,000 $157,000 $36,000 23,000 $59,000 $98,000 1,800 $99,800 29,900 $69,900 Required: Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Round percentages to one decimal place. Use the minus sign to indicate a decrease in the "Difference" columns.

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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