Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 2OY1 20Υ2 20Υ1 Sales .... $910,000 $700,000 Cost of goods sold.. Gross profit ... 441,000 350,000 $469,000 $350,000 $ 139,150 Selling expenses Administrative expenses.. Total operating expenses Income from operations .. $115,000 85,000 99,450 $238,600 $200,000 $230,400 $150,000 Other revenue 50,000 65,000 Income before income tax $295,400 $200,000 Income tax expense . 65,000 50,000 $230,400 $150,000 Net income ...
Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 2OY1 20Υ2 20Υ1 Sales .... $910,000 $700,000 Cost of goods sold.. Gross profit ... 441,000 350,000 $469,000 $350,000 $ 139,150 Selling expenses Administrative expenses.. Total operating expenses Income from operations .. $115,000 85,000 99,450 $238,600 $200,000 $230,400 $150,000 Other revenue 50,000 65,000 Income before income tax $295,400 $200,000 Income tax expense . 65,000 50,000 $230,400 $150,000 Net income ...
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
For 20Y2, Macklin Inc. reported a significant increase in net income. At the end of the year, John Mayer, the president, is presented with the following condensed comparative income statement:
Please see the attachment for details:
Instructions
1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Round percentages to one decimal place.
2. To the extent the data permit, comment on the significant relationships revealed by the horizontal analysis prepared in (1).
Transcribed Image Text:Macklin Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 2OY1
20Υ2
20Υ1
Sales ....
$910,000
$700,000
Cost of goods sold..
Gross profit ...
441,000
350,000
$469,000
$350,000
$ 139,150
Selling expenses
Administrative expenses..
Total operating expenses
Income from operations ..
$115,000
85,000
99,450
$238,600
$200,000
$230,400
$150,000
Other revenue
50,000
65,000
Income before income tax
$295,400
$200,000
Income tax expense .
65,000
50,000
$230,400
$150,000
Net income ...
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education