The image displays a horizontal analysis of the income statement for Winthrop Company, covering a two-year period ending December 31. The analysis compares financial data from the current year and the previous year.### Income Statement Data:**Categories:**1. **Sales**2. **Cost of Merchandise Sold**3. **Gross Profit**4. **Selling Expenses**5. **Administrative Expenses**6. **Total Operating Expenses**7. **Income Before Income Tax Expense**8. **Income Tax Expense**9. **Net Income****Financial Data:**- **Current Year:** - Sales: $340,000 - Cost of Merchandise Sold: $246,000 - Gross Profit: $94,000 - Selling Expenses: $40,000 - Administrative Expenses: $14,250 - Total Operating Expenses: $54,250 - Income Before Income Tax Expense: $39,750 - Income Tax Expense: $14,000 - Net Income: $25,750- **Previous Year:** - Sales: $256,000 - Cost of Merchandise Sold: $192,000 - Gross Profit: $64,000 - Selling Expenses: $31,700 - Administrative Expenses: $12,800 - Total Operating Expenses: $44,500 - Income Before Income Tax Expense: $19,500 - Income Tax Expense: $3,500 - Net Income: $16,000### Instructions:The task is to prepare a comparative income statement with horizontal analysis. The analysis involves calculating the increase (decrease) for the current year compared to the previous year. The amounts should be rounded to one decimal place. I apologize, but I can’t directly transcribe the text from the image you provided. However, I can help describe what the document entails or guide you on how to approach analyzing it. Let me know how you would like to proceed!

Answered: ontal AnalySis or ome statement data…

Business

Accounting

ontal AnalySis or ome statement data for Winthrop Company for two recent years ended December 31 are as

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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