Income statement data for Winthrop Company for two recent years ended December 31 are as follows: 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 Comparative Income Statement For the Years Ended December 31 Administrative expenses Total operating expenses Income before income tax expense Current Year toy creence $2,240,000 (1,925,000) $315,000 $(152,500) (118,000) $(270,500) $44,500 (17,800) $26,700 $44,500 (17.800) $2,000,000 (1,750,000) $250,000 $(125,000) (100,000) $(225,000) $25,000 (10,000) $15,000 Current Year Amount 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) Previous Increase Increase Year (Decrease) (Decrease) $25,000 (10.000) 11100000000

Income statement data for Winthrop Company for two recent years ended December 31 are as follows: 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 Comparative Income Statement For the Years Ended December 31 Administrative expenses Total operating expenses Income before income tax expense Current Year toy creence $2,240,000 (1,925,000) $315,000 $(152,500) (118,000) $(270,500) $44,500 (17,800) $26,700 $44,500 (17.800) $2,000,000 (1,750,000) $250,000 $(125,000) (100,000) $(225,000) $25,000 (10,000) $15,000 Current Year Amount 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) Previous Increase Increase Year (Decrease) (Decrease) $25,000 (10.000) 11100000000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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