Income statements for Stuart Company for Year 3 and Year 4 follow:STUART COMPANYIncome StatementsSalesCost of goods soldSelling expensesAdministrative expensesInterest expenseTotal expensesIncome before taxesIncome taxes expenseNet incomeRequiredYear 4$ 200,500142,40021.40012,200Year 3$ 180,500120,40019,400179,70020,8005,2003.000$ 15,600 $ 17.800159,700a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Yearb. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.

In this question, we need to perform:Horizontal Analysis between Year 3 and Year 4, andVertical…

Income statements for Stuart Company for Year 3 and Year 4 follow: STUART COMPANY Income Statements Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income Year 4 $ 200,500 142,400 21,400 12,200 3,700 179,700 20,800 5,200 3,000 $ 15,600 $ 17,800 Year 3 $ 180,500 120,400 14,200 159,700 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Yea b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.

Income statements for Stuart Company for Year 3 and Year 4 follow: STUART COMPANY Income Statements Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income Year 4 $ 200,500 142,400 21,400 12,200 3,700 179,700 20,800 5,200 3,000 $ 15,600 $ 17,800 Year 3 $ 180,500 120,400 14,200 159,700 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Yea 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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