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Horizontal Analysis of Income Statement For 20Y2, Macklin Inc. reported a significant decrease in net income. At the end of the year, John Mayer, the president, is presented with the following condensed comparative income statement: Macklin Inc. 00s.0112 Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Υ2 20Υ1 Sales $794,884 $722,000 Cost of goods sold (561,200) (460,000) Gross profit $233,684 $262,000 Selling expenses $(77,780) $(61,000) Administrative expenses (45,520) (38,000) Total operating expenses $(123,300) $(99,000) Operating income $110,384 $163,000 Other revenue 3,846 3,000 Income before income tax expense $114,230 $166,000 Income tax expense (32,000) (49,800) $82,230 $116,200 Net income Required: 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Use the minus sign to indicate a decrease in the "Increase/(Decrease)" columns. If required, round percentages to one decimal place. Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Increase/ Increase/ (Decrease) (Decrease) Amount 20Υ2 20Υ1 Percent Sales $794,884 %24 $722,000 % Cost of goods sold (561,200) (460,000) % Gross profit $233,684 $262,000 2$ $(77,780) $(61,000) Selling expenses % (45,520) (38,000) Administrative expenses $(123,300) $(99,000) Total operating expenses % $110,384 $163,000 % Operating income

Horizontal Analysis of Income Statement For 20Y2, Macklin Inc. reported a significant decrease in net income. At the end of the year, John Mayer, the president, is presented with the following condensed comparative income statement: Macklin Inc. 00s.0112 Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Υ2 20Υ1 Sales $794,884 $722,000 Cost of goods sold (561,200) (460,000) Gross profit $233,684 $262,000 Selling expenses $(77,780) $(61,000) Administrative expenses (45,520) (38,000) Total operating expenses $(123,300) $(99,000) Operating income $110,384 $163,000 Other revenue 3,846 3,000 Income before income tax expense $114,230 $166,000 Income tax expense (32,000) (49,800) $82,230 $116,200 Net income Required: 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Use the minus sign to indicate a decrease in the "Increase/(Decrease)" columns. If required, round percentages to one decimal place. Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Increase/ Increase/ (Decrease) (Decrease) Amount 20Υ2 20Υ1 Percent Sales $794,884 %24 $722,000 % Cost of goods sold (561,200) (460,000) % Gross profit $233,684 $262,000 2$ $(77,780) $(61,000) Selling expenses % (45,520) (38,000) Administrative expenses $(123,300) $(99,000) Total operating expenses % $110,384 $163,000 % Operating income

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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12/8/2020 enimse egsghs CengageNOWV2 | Online leaching ald 1oaning 1OD00I 00 Other revenue 3,846 3,000 insm Income before income tax expense $114,230 $166,000 beo erbeysM nrtol assy at lo bra adi JA.omaani J9n ni s2seb nsaili Income tax expense (32,000) (49,800) $. $116,200 ani niblasM Net income $82,230 inemeieo omoont avidsnsqmo) EYOS bas SYOS IE 19dmsoe0 bebna assY eri vo 2. Net income has SOAT from 20Y1 to 20Y2. Sales have SYOS ; however, the cost of goods sold has at a faster rate than sales, causing the gross profit to (000,00A)(003.10c) blce 2boog 000, ((000,8E) 41,2(000,ee) (008,ESIe Equity geditors) tng t00, sunsve eo 00 0,8012 (008.0A) (000,8E) ock
Transcribed Image Text:12/8/2020 enimse egsghs CengageNOWV2 | Online leaching ald 1oaning 1OD00I 00 Other revenue 3,846 3,000 insm Income before income tax expense $114,230 $166,000 beo erbeysM nrtol assy at lo bra adi JA.omaani J9n ni s2seb nsaili Income tax expense (32,000) (49,800) $. $116,200 ani niblasM Net income $82,230 inemeieo omoont avidsnsqmo) EYOS bas SYOS IE 19dmsoe0 bebna assY eri vo 2. Net income has SOAT from 20Y1 to 20Y2. Sales have SYOS ; however, the cost of goods sold has at a faster rate than sales, causing the gross profit to (000,00A)(003.10c) blce 2boog 000, ((000,8E) 41,2(000,ee) (008,ESIe Equity geditors) tng t00, sunsve eo 00 0,8012 (008.0A) (000,8E) ock
Horizontal Analysis of Income Statement For 20Y2, Macklin Inc. reported a significant decrease in net income. At the end of the year, John Mayer, the president, is presented with the following condensed comparative income statement: Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $794,884 $722,000 i ne si st Cost of goods sold (561,200) (460,000) Gross profit $233,684 $262,000 Selling expenses $(77,780) $(61,000) Administrative expenses (45,520) (38,000) $(123,300) $(99,000) Total operating expenses Operating income $110,384 $163,000 Other revenue 3,846 Income before income tax expense $114,230 $166,000 Income tax expense (32,000) (49,800) $82,230 $116,200 Net income Required: 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Use the minus sign to indicate a decrease in the "Increase/(Decrease)" columns. If required, round percentages to one decimal place. Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Increase/ Increase/ (Decrease) (Decrease) 20Υ2 20Y1 Amount Percent $ $722,000 Sales $794,884 % Cost of goods sold (561,200) (460,000) % Gross profit $233,684 $262,000 % Selling expenses $(77,780) $(61,000) % (45,520) (38,000) Administrative expenses $(123,300) $(99,000) Total operating expenses $110,384 $163,000 % Operating income 1/2 ulnooninnmontSessionl.ocator=&inprogress%3Dfalse
Transcribed Image Text:Horizontal Analysis of Income Statement For 20Y2, Macklin Inc. reported a significant decrease in net income. At the end of the year, John Mayer, the president, is presented with the following condensed comparative income statement: Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $794,884 $722,000 i ne si st Cost of goods sold (561,200) (460,000) Gross profit $233,684 $262,000 Selling expenses $(77,780) $(61,000) Administrative expenses (45,520) (38,000) $(123,300) $(99,000) Total operating expenses Operating income $110,384 $163,000 Other revenue 3,846 Income before income tax expense $114,230 $166,000 Income tax expense (32,000) (49,800) $82,230 $116,200 Net income Required: 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Use the minus sign to indicate a decrease in the "Increase/(Decrease)" columns. If required, round percentages to one decimal place. Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Increase/ Increase/ (Decrease) (Decrease) 20Υ2 20Y1 Amount Percent $ $722,000 Sales $794,884 % Cost of goods sold (561,200) (460,000) % Gross profit $233,684 $262,000 % Selling expenses $(77,780) $(61,000) % (45,520) (38,000) Administrative expenses $(123,300) $(99,000) Total operating expenses $110,384 $163,000 % Operating income 1/2 ulnooninnmontSessionl.ocator=&inprogress%3Dfalse
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