For 20Y3, Greyhound Technology Company reported its most significant decline in net income in years. At the end of the year, Duane Vogel, the president, is presented with the following condensed comparative income statement:GREYHOUND TECHNOLOGY COMPANYComparative Income StatementFor the Years Ended December 31, 20Y3 and 20Y2 20Y3 20Y2Sales$ 586,521 $ 513,000 Cost of goods sold(416,000) (320,000)Gross profit$ 170,521 $ 193,000 Selling expenses$ (59,130) $ (43,000)Administrative expenses(34,290) (27,000)Total operating expenses$ (93,420) $ (70,000)Income from operations$ 77,101 $ 123,000 Other income2,809 2,200 Income before income tax$ 79,910 $ 125,200 Income tax expense(22,400) (37,600)Net income$ 57,510 $ 87,600 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y2 as the base year. Enter decreases as negative amounts and negativepercentages. Round percentage changes to one decimal place.Greyhound Technology CompanyComparative Income StatementFor the Years Ended December 31, 20Y3 and 20Y2Increase (Decrease) Increase (Decrease)20Υ320Υ2AmountPercentSales$586,521$513,000 $%Cost of goods sold(416,000)(320,000)%Gross profit$170,521$193,000 $%Selling expenses$(59,130)$(43,000) $%Administrative expenses(34,290)(27,000)Total operating expenses$(93,420) $(70,000) $%Income from operations$77,101$123,000 $%Other income2,8092,200%Income before income tax$79,910$125,200 $Income tax expense(22,400)(37,600)%Net income$57,510$87,600 $%

Comparative income statement is a part of comparative analysis which helps to show the comparison…

Answered: For 20Y3, Greyhound Technology Company…

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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For 20Y3, Greyhound Technology Company reported its most significant decline in net income in years. At the end of the year, Duane Vogel, the president, is presented with the following condensed comparative income statement:

GREYHOUND TECHNOLOGY COMPANY Comparative Income Statement For the Years Ended December 31, 20Y3 and 20Y2
	20Y3	20Y2
Sales	$ 586,521	$ 513,000
Cost of goods sold	(416,000)	(320,000)
Gross profit	$ 170,521	$ 193,000
Selling expenses	$ (59,130)	$ (43,000)
Administrative expenses	(34,290)	(27,000)
Total operating expenses	$ (93,420)	$ (70,000)
Income from operations	$ 77,101	$ 123,000
Other income	2,809	2,200
Income before income tax	$ 79,910	$ 125,200
Income tax expense	(22,400)	(37,600)
Net income	$ 57,510	$ 87,600

1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y2 as the base year. Enter decreases as negative amounts and negative
percentages. Round percentage changes to one decimal place.
Greyhound Technology Company
Comparative Income Statement
For the Years Ended December 31, 20Y3 and 20Y2
Increase (Decrease) Increase (Decrease)
20Υ3
20Υ2
Amount
Percent
Sales
$586,521
$513,000 $
%
Cost of goods sold
(416,000)
(320,000)
%
Gross profit
$170,521
$193,000 $
%
Selling expenses
$(59,130)
$(43,000) $
%
Administrative expenses
(34,290)
(27,000)
Total operating expenses
$(93,420) $(70,000) $
%
Income from operations
$77,101
$123,000 $
%
Other income
2,809
2,200
%
Income before income tax
$79,910
$125,200 $
Income tax expense
(22,400)
(37,600)
%
Net income
$57,510
$87,600 $
%

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