Problem 1 HORIZONTAL ANALYSIS. Smith Corporation provides the following comparative income statement: Smith Corporation Comparative Income Statement For the Years Ended December 31, 20X3 and 20X2 20X3 20X2 Sales $570.000 $680.000 170.000 Cost of goods sold Gross profit Operating expenses 200,000 S370.000 S510.000 100,000 210,000 EBIT S270,000 $300,000 Requirement: Calculate the percentage change using horizontal analysis and evaluate the results.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Probler
FINANC
Exercises
Exercise 01
Solve the following problems: Write your anşwers with solutions on the extra shoet
provided at the end part of the module.
Instructions:
Problem 1
Income b.
HORIZONTAL ANALYSIS. Smith Corporation provides the following comparative
equity in t
is $35.
income statement:
Smith Corporation
Requirem
Calculate t
Comparative Income Statement
For the Years Ended December 31, 20X3 and 20X2
20X2
20X3
a. Net im
$680.000
b. Prefer
$570.000
c. Retur
d. Times
170,000
Sales
200,000
$510.000
Cost of goods sold
$370.000
e. Earnim
f. Price/e
g. Book v
210.000
Gross profit
Operating expenses
100,000
$300,000
$270,000
EBIT
Problem 5
Requirement:
Calculate the percentage change using horizontal analysis and evaluate the results.
ACCOUNTS
accounts rS
statement
Lome
Problem 2
Transcribed Image Text:Probler FINANC Exercises Exercise 01 Solve the following problems: Write your anşwers with solutions on the extra shoet provided at the end part of the module. Instructions: Problem 1 Income b. HORIZONTAL ANALYSIS. Smith Corporation provides the following comparative equity in t is $35. income statement: Smith Corporation Requirem Calculate t Comparative Income Statement For the Years Ended December 31, 20X3 and 20X2 20X2 20X3 a. Net im $680.000 b. Prefer $570.000 c. Retur d. Times 170,000 Sales 200,000 $510.000 Cost of goods sold $370.000 e. Earnim f. Price/e g. Book v 210.000 Gross profit Operating expenses 100,000 $300,000 $270,000 EBIT Problem 5 Requirement: Calculate the percentage change using horizontal analysis and evaluate the results. ACCOUNTS accounts rS statement Lome Problem 2
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