Horizontal Analysis of the Income StatementIncome statement data for Winthrop Company for two recent years ended December 31, are as follows:SalesCost of goods soldGross profitSelling expensesAdministrative expensesTotal operating expensesIncome before income taxIncome tax expensesNet incomeCurrent Year$381,300312,000$69,300$19,21018,150$37,360$31,94012,800$19,140Previous Year$310,000260,000$50,000$17,00015,000$32,000$18,0007,200$10,800 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. Ifrequired, round to one decimal place.Winthrop CompanySalesCost of goods soldGross profitSelling expensesComparative Income StatementFor the Years Ended December 31Current Previous IncreaseyearAdministrative expensesTotal operating expensesIncome before income taxIncome tax expenseNet incomeIncreaseyear (Decrease) (Decrease)Amount Amount Amount Percent$381,300 $310,000 $312,000260,000$69,300$50,000 $$19,210$17,00018,15015,000$37,360$31,94012,800$19,140$32,000$18,000 $7,200$10,800%%%%%%%%%

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Description: Horizontal Analysis of the Income StatementIncome statement data for Winthrop Company for two recent years ended December 31, are as follows:SalesCost of goods soldGross profitSelling expensesAdministrative expensesTotal operating expensesIncome bef

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Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Current Year $381,300 312,000 $69,300 $19,210 18,150 $37,360 $31,940 12,800 $19,140 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax Income tax expenses Net income Previous Year $310,000 260,000 $50,000 $17,000 15,000 $32,000 $18,000 7,200 $10,800

Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Current Year $381,300 312,000 $69,300 $19,210 18,150 $37,360 $31,940 12,800 $19,140 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax Income tax expenses Net income Previous Year $310,000 260,000 $50,000 $17,000 15,000 $32,000 $18,000 7,200 $10,800

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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
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