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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 $200,500 142,000 20,100 12,900 3,800 $178,800 21,700 6,900 $14,800 Year 3 $180,500 120,000 18,100 14,900 5,800 $158,800 21,700 3,200 $18,500 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and 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 $200,500 142,000 20,100 12,900 3,800 $178,800 21,700 6,900 $14,800 Year 3 $180,500 120,000 18,100 14,900 5,800 $158,800 21,700 3,200 $18,500 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Income statements for Stuart Company for Year 3 and Year 4 follow. Sales Cost of goods sold Selling expenses STUART COMPANY Income Statements Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Set income Year 4 $200,500 142,000 20,100 12,900 3,800 $178,800 21,700 6,900 $14,800 Year 3 $180,500 120,000 18,100 14,900 5,800 $158,800 21,700 3,200 $18,500 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. Complete this question by entering your answers in the tabs below. Required A Required B Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. (Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (.e., 0.234 should be entered as 23.4).)
Transcribed Image Text:Income statements for Stuart Company for Year 3 and Year 4 follow. Sales Cost of goods sold Selling expenses STUART COMPANY Income Statements Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Set income Year 4 $200,500 142,000 20,100 12,900 3,800 $178,800 21,700 6,900 $14,800 Year 3 $180,500 120,000 18,100 14,900 5,800 $158,800 21,700 3,200 $18,500 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. Complete this question by entering your answers in the tabs below. Required A Required B Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. (Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (.e., 0.234 should be entered as 23.4).)
Complete this question by entering your answers in the tabs below. Required A Required B Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. (Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (.e., 0.234 should be entered as 23.4).) STUART COMPANY Horizontal Analysis of Income Statements Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (loss) Percentage Change over Year 3 % % Required B >
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required A Required B Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. (Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (.e., 0.234 should be entered as 23.4).) STUART COMPANY Horizontal Analysis of Income Statements Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (loss) Percentage Change over Year 3 % % Required B >
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