Performing horizontal analysis—income statementData for Mulberry Designs, Inc. follow:RequirementsPrepare a horizontal analysis of the comparative income statement of Mulberry Designs, Inc. Round percentage changes to one decimal place.Why did 2018 net income increase by a higher percentage than net sales revenue? MULBERRY DESIGNS, INC.Comparative Income StatementYears Ended December 31, 2018 and 201720182017Net Sales Revenue$ 431,000$ 372,350Expenses:Cost of Goods Sold203,850186,000Selling and Administrative Expenses99,00093,250Other Expenses9,0004,650Total Expenses311,850283,900Net Income$ 119,150$ 88,450

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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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Performing horizontal analysis—income statement

Data for Mulberry Designs, Inc. follow:

Requirements

Prepare a horizontal analysis of the comparative income statement of Mulberry Designs, Inc. Round percentage changes to one decimal place.
Why did 2018 net income increase by a higher percentage than net sales revenue?

MULBERRY DESIGNS, INC.
Comparative Income Statement
Years Ended December 31, 2018 and 2017
2018
2017
Net Sales Revenue
$ 431,000
$ 372,350
Expenses:
Cost of Goods Sold
203,850
186,000
Selling and Administrative Expenses
99,000
93,250
Other Expenses
9,000
4,650
Total Expenses
311,850
283,900
Net Income
$ 119,150
$ 88,450

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