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

Horizontal Analysis - Horizontal Analysis is a method of analyzing financial statements. Under this…

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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

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Chapter1: Financial Statements And Business Decisions

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