Income statement data for Winthrop Company for two recent years ended December 31 are as follows: Current Year Previous Year Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax expense Income tax expense Net income Line Item Description Sales Cost of goods sold Gross profit Selling expenses a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round your answers to one decimal place. Winthrop Company $2,240,000 (1,925,000) $315,000 $(152,500) (118,000) $(270,500) Administrative expenses Total operating expenses Income before income tax expense Income tax expense Net income $44,500 (17,800) $26,700 Comparative Income Statement For the Years Ended December 31 Current Year Amount Previous Year Amount $2,240,000 $2,000,000 $ (1,925,000) (1,750,000) $315,000 $250,000 $(152,500) $(125,000) (118,000) (100,000) $(270,500) $(225,000) $44,500 (17,800) $26,700 $2,000,000 (1,750,000) $250,000 $(125,000) (100,000) $(225,000) $25,000 (10,000) $15,000 Increase Increase (Decrease) (Decrease) Amount Percent $25,000 $ (10,000) $15,000 % % % % % % % % %
Income statement data for Winthrop Company for two recent years ended December 31 are as follows: Current Year Previous Year Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax expense Income tax expense Net income Line Item Description Sales Cost of goods sold Gross profit Selling expenses a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round your answers to one decimal place. Winthrop Company $2,240,000 (1,925,000) $315,000 $(152,500) (118,000) $(270,500) Administrative expenses Total operating expenses Income before income tax expense Income tax expense Net income $44,500 (17,800) $26,700 Comparative Income Statement For the Years Ended December 31 Current Year Amount Previous Year Amount $2,240,000 $2,000,000 $ (1,925,000) (1,750,000) $315,000 $250,000 $(152,500) $(125,000) (118,000) (100,000) $(270,500) $(225,000) $44,500 (17,800) $26,700 $2,000,000 (1,750,000) $250,000 $(125,000) (100,000) $(225,000) $25,000 (10,000) $15,000 Increase Increase (Decrease) (Decrease) Amount Percent $25,000 $ (10,000) $15,000 % % % % % % % % %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Chap 14. Q.3
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Sales
Cost of goods sold
Gross profit
Selling expenses
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
Administrative expenses
Total operating expenses
Income before income tax expense
Income tax expense
Net income
Line Item Description
Sales
Cost of goods sold
Gross profit
Selling expenses
Administrative expenses
Total operating expenses
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a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round your answers to one decimal place.
Winthrop Company
Income before income tax expense
Income tax expense
Net income
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Comparative Income Statement
For the Years Ended December 31
Current
Previous
Year
Year
Amount
Amount
$2,240,000 $2,000,000 $
(1,925,000) (1,750,000)
$315,000 $250,000
$(152,500) $(125,000)
(118,000) (100,000)
$(270,500) $(225,000) $
$25,000 $
(10,000)
$15,000 $
$2,240,000
(1,925,000)
$315,000
$(152,500)
(118,000)
$(270,500)
$44,500
(17,800)
$26,700
$44,500
(17,800)
$26,700
$2,000,000
(1,750,000)
$250,000
$(125,000)
(100,000)
$(225,000)
$25,000
(10,000)
$15,000
Increase Increase
(Decrease) (Decrease)
Amount Percent
%
%
%
%
%
%
%
%
Q } * k A
%
Upd
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