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.

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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