For 20Y2, McDade Company reported a decline in net income. At the end of the year, T. Burrows, 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 20Y2 Sales Cost of merchandise sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue Income before income tax expense Income tax expense Net income $818,551 589,600 $228,951 $84,080 48,320 $132,400 $96,551 3,831 $100,382 28,100 $72,282 McDade Company Comparative Income Statement A DOU 20Y1 Required: 1. 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. FARMA $703,000 440,000 $263,000 $59,000 37,000 $96,000 $167,000 3,000 $170,000 51,000 $119,000

For 20Y2, McDade Company reported a decline in net income. At the end of the year, T. Burrows, 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 20Y2 Sales Cost of merchandise sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue Income before income tax expense Income tax expense Net income $818,551 589,600 $228,951 $84,080 48,320 $132,400 $96,551 3,831 $100,382 28,100 $72,282 McDade Company Comparative Income Statement A DOU 20Y1 Required: 1. 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. FARMA $703,000 440,000 $263,000 $59,000 37,000 $96,000 $167,000 3,000 $170,000 51,000 $119,000

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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In its income statement for the year ended December 31, 2022, Blue Company reported the following condensed data. Operating expenses $760,210 Interest revenue $31,740 Cost of goods sold Interest expense 1,301,200 Loss on disposal of plant assets 15,430 72,400 Net sales 2,413,300 (a) Prepare a multiple-step income statement. (List other revenues before other expenses. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) BLUE COMPANY Income Statement For the Year Ended December 31, 2022
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The following percentages apply to Zachary Company for Year 3 and Year 4: Sales Cost of goods sold Gross margin Selling and administrative expense Interest expense Total expenses Income before taxes Income tax expense Net income ZACHARY COMPANY Income Statements Sales Cost of goods sold Gross margin Selling and administrative expenses Interest expense Total expenses Income before taxes Income tax expense Net income Required Assuming that sales were $515,000 in Year 3 and $585,000 in Year 4, prepare income statements for the two years. $ Year 4 100.0 % 61.1 38.9 26.5 2.7 29.2 9.7 5.5 4.2 % Year 4 0 0 0 $ Year 3 100.0 % 63.9 36.1 20.3 1.9 Year 3 22.2 13.9 7.2 6.7 % 0 0 0
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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. Yes
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 $660,000 $500,000 Cost of merchandise sold 554,700 430,000 Gross profit $105,300 $70,000 Selling expenses $31,720 $26,000 Administrative expenses 28,600 22,000 Total operating expenses $60,320 $48,000 Income before income tax expense $44,980 $22,000 Income tax expenses 18,000 8,800 Net income $26,980 $13,200
Cochran corporation, Inc. has the following income statement: Cochran corporation, Inc. Income statement For the year ended December 31, 2021 net sales $240 Cost of goods sold $150 gross profit $90 Operating expenses $65 Net income $25 Using vertical analysis, what percentage is assigned to operating expenses? a. 27,1% b. 43.3% c. 72.2% d. 260.0%
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Here are the comparative condensed income statements of Concord Corporation. Concord Corporation Condensed Income Statements For the Years Ended December 31 Net sales Cost of goods sold Gross profit Operating expenses Net income (a) 2022 Net sales $636,000 502,440 133,560 89,040 $44,520 2022 2021 $524,000 Cost of goods sold 502,440 435,444 Prepare a horizontal analysis of the income statement data for Concord Corporation, using 2021 as a base. (Show the amounts of increase or decrease.) (Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.) 88,556 49,780 $38,776 2021 CONCORD CORPORATION Condensed Income Statements $636,000 $524,000 435,444 $ Increase or (Decrease) During 2022 Amount Percentage % %