Horizontal Analysis of the Statement of Income Revenue Cost of sales Gross profit Other income Distribution costs Salaries Commissions Travelling Advertising Depreciation/amortization Total distribution costs Administrative expenses Salaries Leasing Depreciation/amortization Total administrative expenses Finance costs Total other income/expenses Profit before taxes Income tax expense Profit for the year 2013 350,000 420,000 177,000 209,000 173,000 211,000 5,000 50,000 2,000 2,000 3,000 20,000 77,000 30,000 5,000 18,000 53,000 2014 $ Change % Change 10,000 38,000 13,000 5,000 60,000 3,000 3,000 5,000 20,000 91,000 38,000 7,000 20,000 65,000 135,000 165,000 14,000 46,000 13,000 25,000 33,000 70,000 20.00% 2015 800,000 380,000 406,000 394,000 5,000 80,000 5,000 5,000 10,000 40,000 140,000 60,000 10,000 40,000 110,000 30,000 275,000 119,000 42,000 $ Change % Change 77,000 90.48%
Horizontal Analysis of the Statement of Income Revenue Cost of sales Gross profit Other income Distribution costs Salaries Commissions Travelling Advertising Depreciation/amortization Total distribution costs Administrative expenses Salaries Leasing Depreciation/amortization Total administrative expenses Finance costs Total other income/expenses Profit before taxes Income tax expense Profit for the year 2013 350,000 420,000 177,000 209,000 173,000 211,000 5,000 50,000 2,000 2,000 3,000 20,000 77,000 30,000 5,000 18,000 53,000 2014 $ Change % Change 10,000 38,000 13,000 5,000 60,000 3,000 3,000 5,000 20,000 91,000 38,000 7,000 20,000 65,000 135,000 165,000 14,000 46,000 13,000 25,000 33,000 70,000 20.00% 2015 800,000 380,000 406,000 394,000 5,000 80,000 5,000 5,000 10,000 40,000 140,000 60,000 10,000 40,000 110,000 30,000 275,000 119,000 42,000 $ Change % Change 77,000 90.48%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Horizontal Analysis of the Statement of Income
Revenue
Cost of sales
Gross profit
Other income
Distribution costs
Salaries
Commissions
Travelling
Advertising
Depreciation/amortization
Total distribution costs
Administrative expenses
Salaries
Leasing
Depreciation/amortization
Total administrative expenses
Finance costs
Total other income/expenses
Profit before taxes
Income tax expense
Profit for the year
2013
2014 $ Change % Change
350,000 420,000
177,000 209,000
173,000 211,000
5,000
5,000
50,000 60,000
2,000
3,000
2,000
3,000
3,000
5,000
20,000 20,000
77,000 91,000
30,000 38,000
5,000
7,000
18,000 20,000
53,000
65,000
10,000 14,000
135,000 165,000
38,000 46,000
13,000 13,000
25,000 33,000
70,000
20.00%
2015 $ Change % Change
800,000 380,000
406,000
394,000
5,000
80,000
5,000
5,000
10,000
40,000
140,000
60,000
10,000
40,000
110,000
30,000
275,000
119,000
42,000
77,000
90.48%
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