Income statement data for Winthrop Company for two recent years ended December 31 are as follows: 1 Current Year Previous Year 2 Sales $1,596,000.00 $1,400,000.00 3 Cost of goods sold 1,316,700.00 1,197,000.00 4 Gross profit $279,300.00 $203,000.00 5 Selling expenses $76,950.00 $67,500.00 6 Administrative expenses 55,000.00 50,000.00 7 Total operating expenses $131,950.00 $117,500.00 8 Income before income tax $147,350.00 $85,500.00 9 Income tax expense 11,060.00 7,000.00 10 Net income $136,290.00 $78,500.00 A. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. Round percentages to one decimal place. B. What conclusions can be drawn from the horizontal analysis? Round the answers to one decimal place.
Income statement data for Winthrop Company for two recent years ended December 31 are as follows: 1 Current Year Previous Year 2 Sales $1,596,000.00 $1,400,000.00 3 Cost of goods sold 1,316,700.00 1,197,000.00 4 Gross profit $279,300.00 $203,000.00 5 Selling expenses $76,950.00 $67,500.00 6 Administrative expenses 55,000.00 50,000.00 7 Total operating expenses $131,950.00 $117,500.00 8 Income before income tax $147,350.00 $85,500.00 9 Income tax expense 11,060.00 7,000.00 10 Net income $136,290.00 $78,500.00 A. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. Round percentages to one decimal place. B. What conclusions can be drawn from the horizontal analysis? Round the answers to one decimal place.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Income statement data for Winthrop Company for two recent years ended December 31 are as follows:
|
1
|
|
Current Year
|
Previous Year
|
|
2
|
Sales
|
$1,596,000.00
|
$1,400,000.00
|
|
3
|
Cost of goods sold
|
1,316,700.00
|
1,197,000.00
|
|
4
|
Gross profit
|
$279,300.00
|
$203,000.00
|
|
5
|
Selling expenses
|
$76,950.00
|
$67,500.00
|
|
6
|
Administrative expenses
|
55,000.00
|
50,000.00
|
|
7
|
Total operating expenses
|
$131,950.00
|
$117,500.00
|
|
8
|
Income before income tax
|
$147,350.00
|
$85,500.00
|
|
9
|
Income tax expense
|
11,060.00
|
7,000.00
|
|
10
|
Net income
|
$136,290.00
|
$78,500.00
|
| A. | Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. Round percentages to one decimal place. |
| B. | What conclusions can be drawn from the horizontal analysis? Round the answers to one decimal place. |
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