Income statements for Jordan Company for Year 3 and Year 4 follow. Sales Cost of goods sold. Selling expenses JORDAN COMPANY Income Statements Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income Year 4 $200,800 142,500 20,900 12,000 3,700 $179, 100 21,700 6,200 $15,500 Year 3 $180,800 120,500 18,900 14,000 5,700 $159,100 21,700 3,800 $17,900 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.
Income statements for Jordan Company for Year 3 and Year 4 follow. Sales Cost of goods sold. Selling expenses JORDAN COMPANY Income Statements Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income Year 4 $200,800 142,500 20,900 12,000 3,700 $179, 100 21,700 6,200 $15,500 Year 3 $180,800 120,500 18,900 14,000 5,700 $159,100 21,700 3,800 $17,900 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Income statements for Jordan Company for Year 3 and Year 4 follow.
Sales
Cost of goods sold
Selling expenses
JORDAN COMPANY
Income Statements
Administrative expenses
Interest expense
Total expenses
Income before taxes
Income taxes expense
Net income
Year 4
$200,800
142,500
20,900
12,000
3,700
$179,100
21,700
6,200
$15,500
Year 3
$180,800
120,500
18,900
14,000
5,700
$159,100
21,700
3,800
$17,900
Required
a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4.
b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Febf730f7-7414-40db-96a1-e1b8209a5a83%2Fa0304518-04bd-4cb1-9a7f-784a412e38b1%2Fw19u1yp_processed.png&w=3840&q=75)
Transcribed Image Text:Income statements for Jordan Company for Year 3 and Year 4 follow.
Sales
Cost of goods sold
Selling expenses
JORDAN COMPANY
Income Statements
Administrative expenses
Interest expense
Total expenses
Income before taxes
Income taxes expense
Net income
Year 4
$200,800
142,500
20,900
12,000
3,700
$179,100
21,700
6,200
$15,500
Year 3
$180,800
120,500
18,900
14,000
5,700
$159,100
21,700
3,800
$17,900
Required
a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4.
b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.
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