Lewis Company has a condensed income statement as shown below. Sales Wages expense Rent expense Utilities expense Total operating expenses Net income Year 2 $178,400 $100,000 33,000 30,000 $163,000 $15,400 Year 1 $162,500 $92,500 30,000 25,000 $147,500 $15,000 Required: Prepare a horizontal analysis of Lewis Company's income statements. Comment on the trends, both favorable and unfavorable. If required, round your answers to one decimal place. For those boxes in which you must enter subtractive or negative numbers use a minus sign.

Lewis Company has a condensed income statement as shown below. Sales Wages expense Rent expense Utilities expense Total operating expenses Net income Year 2 $178,400 $100,000 33,000 30,000 $163,000 $15,400 Year 1 $162,500 $92,500 30,000 25,000 $147,500 $15,000 Required: Prepare a horizontal analysis of Lewis Company's income statements. Comment on the trends, both favorable and unfavorable. If required, round your answers to one decimal place. For those boxes in which you must enter subtractive or negative numbers use a minus sign.

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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