McDade Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales..... $16,800,000 $ 15,000,000 Cost of goods sold.. Gross profit .... 11,500,000 $ 5,300,000 $ 5,000,000 $ 1,770,000 $ 1,500,000 10,000,000 Selling expenses Administrative expenses. Total operating expenses Income from operations . Other income.. 1,000,000 2,990,000 $ 2,500,000 $ 2,310,000 $ 2,500,000 256,950 $ 2,566,950 $ 2,725,000 1,220,000 225,000 Income before income tax Income tax expense 1,413,000 1,500,000 Net income. $ 1,153,950 $ 1,225,000
McDade Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales..... $16,800,000 $ 15,000,000 Cost of goods sold.. Gross profit .... 11,500,000 $ 5,300,000 $ 5,000,000 $ 1,770,000 $ 1,500,000 10,000,000 Selling expenses Administrative expenses. Total operating expenses Income from operations . Other income.. 1,000,000 2,990,000 $ 2,500,000 $ 2,310,000 $ 2,500,000 256,950 $ 2,566,950 $ 2,725,000 1,220,000 225,000 Income before income tax Income tax expense 1,413,000 1,500,000 Net income. $ 1,153,950 $ 1,225,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
For 20Y2, McDade Company reported a decline in net income. At the end of the year, T. Burrows, the president, is presented with the following condensed comparative income statement:
Instructions
-
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.
AnswerCheck Figure: Sales, 12.0% increase
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To the extent the data permit, comment on the significant relationships revealed by the horizontal analysis prepared in (1).
PR 17-2A
Vertical analysis of incom
Transcribed Image Text:McDade Company
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Y2
20Y1
Sales.....
$16,800,000 $ 15,000,000
Cost of goods sold..
Gross profit ....
11,500,000
$ 5,300,000 $ 5,000,000
$ 1,770,000 $ 1,500,000
10,000,000
Selling expenses
Administrative expenses.
Total operating expenses
Income from operations .
Other income..
1,000,000
2,990,000 $ 2,500,000
$ 2,310,000 $ 2,500,000
256,950
$ 2,566,950 $ 2,725,000
1,220,000
225,000
Income before income tax
Income tax expense
1,413,000
1,500,000
Net income.
$ 1,153,950
$ 1,225,000
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