Homework Help is Here – Start Your Trial Now!
Business
Accounting
Income statement data for Winthrop Company for two recent years ended December 31 are as follows: Previous Year Current Year Sales $412,500 $330,000 Cost of merchandise sold 356,700 290,000 Gross profit $55,800 $40,000 Selling expenses $16,100 $14,000 Administrative expenses 14,760 12,000 Total operating expenses $30,860 $26,000 Income before income tax expense $24,940 $14,000 Income tax expenses 10,0০০ 5,600 Net income $14,940 $8,400 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 to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent Sales $412,500 $330,000 s Cost of merchandise sold 356,700 290.000 Gross profit $55,800 $40,000 Selling expenses $16,100 $14,000 s Administrative expenses 14,760 12,000 Total operating expenses $30.860 $26.000 Income before income tax expense $24,940 $14,000 Income tax expense 10,000 5,600 Net income $14,940 $8,400 S

Income statement data for Winthrop Company for two recent years ended December 31 are as follows: Previous Year Current Year Sales $412,500 $330,000 Cost of merchandise sold 356,700 290,000 Gross profit $55,800 $40,000 Selling expenses $16,100 $14,000 Administrative expenses 14,760 12,000 Total operating expenses $30,860 $26,000 Income before income tax expense $24,940 $14,000 Income tax expenses 10,0০০ 5,600 Net income $14,940 $8,400 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 to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent Sales $412,500 $330,000 s Cost of merchandise sold 356,700 290.000 Gross profit $55,800 $40,000 Selling expenses $16,100 $14,000 s Administrative expenses 14,760 12,000 Total operating expenses $30.860 $26.000 Income before income tax expense $24,940 $14,000 Income tax expense 10,000 5,600 Net income $14,940 $8,400 S

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

.

Horizontal Analysis of the Income Statement Income statement data for Wwinthrop Company for two recent years ended December 31 are as follows: Current Year Previous Year Sales $412,500 $330,000 Cost of merchandise sold 356,700 290,000 Gross profit $55,800 $40,000 Selling expenses $16,100 $14,000 Administrative expenses 14,760 12,000 Total operating expenses $30,860 $26,000 Income before income tax expense $24,940 $14,000 Income tax expenses 10,000 5,600 Net income $14,940 $8,400 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 to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent Sales $412,500 $330,000 $ Cost of merchandise sold 356,700 290,000 % Gross profit $55,800 $40,000 % Selling expenses $16,100 $14,000 $ % Administrative expenses 14,760 12,000 Total operating expenses $30,860 $26,000 s Income before income tax expense $24,940 $14,000 $ % Income tax expense 10,000 5,600 Net income $14,940 $8,400 $ %
Transcribed Image Text:Horizontal Analysis of the Income Statement Income statement data for Wwinthrop Company for two recent years ended December 31 are as follows: Current Year Previous Year Sales $412,500 $330,000 Cost of merchandise sold 356,700 290,000 Gross profit $55,800 $40,000 Selling expenses $16,100 $14,000 Administrative expenses 14,760 12,000 Total operating expenses $30,860 $26,000 Income before income tax expense $24,940 $14,000 Income tax expenses 10,000 5,600 Net income $14,940 $8,400 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 to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent Sales $412,500 $330,000 $ Cost of merchandise sold 356,700 290,000 % Gross profit $55,800 $40,000 % Selling expenses $16,100 $14,000 $ % Administrative expenses 14,760 12,000 Total operating expenses $30,860 $26,000 s Income before income tax expense $24,940 $14,000 $ % Income tax expense 10,000 5,600 Net income $14,940 $8,400 $ %
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Loanable Funds Theory
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS