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Question (1) The income statements for Federer Sports Apparel for 2022 and 2021 are presented below. (A) Required: Prepare a vertical analysis of the data for 2022 and 2021. (Round your percentage answers to 1 decimal place.) Net sales Cost of goods sold Gross profit Operating expenses Depreciation expense Inventory write-down Loss (litigation) Income before tax Income tax expense Net income Net sales Cost of goods sold Gross profit Operating expenses Depreciation expense Inventory write-down Loss (litigation) FEDERER SPORTS APPAREL Income before tax Income tax expense Net income Income Statement For the Years Ended December 31 2022 Amount $ 18,800,000 13,200,000 5,600,000 1,600,000 1,000,000 200,000 1,500,000 1,300,000 450,000 $ 850,000 % FEDERER SPORTS APPAREL Income Statement For the Years Ended December 31 Year (B) Required: Prepare a horizontal analysis for 2022 using 2021 as the base year. (Decreases should be indicated with a minus sign. Round your percentage answers to 1 decimal place.) 2022 2021 $ 18,800,000 $15,500,000 13,200,000 5,600,000 1,600,000 1,000,000 $ 7,000,000 8,500,000 1,200,000 1,000,000 2021 200,000 1,500,000 300,000 1,300,000 6,000,000 450,000 2,000,000 850,000 $ 4,000,000 Amount $ 15,500,000 7,000,000 8,500,000 1,200,000 1,000,000 0 300,000 6,000,000 2,000,000 $ 4,000,000 % Increase (Decrease) Amount %

Question (1) The income statements for Federer Sports Apparel for 2022 and 2021 are presented below. (A) Required: Prepare a vertical analysis of the data for 2022 and 2021. (Round your percentage answers to 1 decimal place.) Net sales Cost of goods sold Gross profit Operating expenses Depreciation expense Inventory write-down Loss (litigation) Income before tax Income tax expense Net income Net sales Cost of goods sold Gross profit Operating expenses Depreciation expense Inventory write-down Loss (litigation) FEDERER SPORTS APPAREL Income before tax Income tax expense Net income Income Statement For the Years Ended December 31 2022 Amount $ 18,800,000 13,200,000 5,600,000 1,600,000 1,000,000 200,000 1,500,000 1,300,000 450,000 $ 850,000 % FEDERER SPORTS APPAREL Income Statement For the Years Ended December 31 Year (B) Required: Prepare a horizontal analysis for 2022 using 2021 as the base year. (Decreases should be indicated with a minus sign. Round your percentage answers to 1 decimal place.) 2022 2021 $ 18,800,000 $15,500,000 13,200,000 5,600,000 1,600,000 1,000,000 $ 7,000,000 8,500,000 1,200,000 1,000,000 2021 200,000 1,500,000 300,000 1,300,000 6,000,000 450,000 2,000,000 850,000 $ 4,000,000 Amount $ 15,500,000 7,000,000 8,500,000 1,200,000 1,000,000 0 300,000 6,000,000 2,000,000 $ 4,000,000 % Increase (Decrease) Amount %

FINANCIAL ACCOUNTING
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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Question (1) The income statements for Federer Sports Apparel for 2022 and 2021 are presented below. (A) Required: Prepare a vertical analysis of the data for 2022 and 2021. (Round your percentage answers to 1 decimal place.) Net sales Cost of goods sold Gross profit Operating expenses Depreciation expense Inventory write-down Loss (litigation) Income before tax Income tax expense Net income Net sales Cost of goods sold Gross profit Operating expenses Depreciation expense Inventory write-down Loss (litigation) Income before tax Income tax expense Net income FEDERER SPORTS APPAREL Net sales Cost of goods sold Gross profit Operating expenses Depreciation expense Inventory write-down Loss (litigation) Income Statement For the Years Ended December 31 Income before tax Income tax expense Net income Amount $18,800,000 $ 2022 13,200,000 5,600,000 1,600,000 1,000,000 200,000 1,500,000 1,300,000 450,000 850,000 % (B) Required: Prepare a horizontal analysis for 2022 using 2021 as the base year. (Decreases should be indicated with a minus sign. Round your percentage answers to 1 decimal place.) FEDERER SPORTS APPAREL $ Income Statement For the Years Ended December 31 Year 2022 2021 $ 18,800,000 $ 15,500,000 13,200,000 7,000,000 5,600,000 8,500,000 1,600,000 1,200,000 1,000,000 1,000,000 200,000 1,500,000 1,300,000 450,000 850,000 $4,000,000 300,000 6,000,000 2,000,000 FEDERER SPORTS APPAREL Income Statement For the Years Ended December 31 Year 2022 2021 $ 18,800,000 $15,500,000| 13,200,000 7,000,000 5,600,000 8,500,000 1,600,000 1,200,000 1,000,000 1,000,000 200,000 1,500,000 1,300,000 2021 300,000 6,000,000 2,000,000 Amount $ 15,500,000 7,000,000 8,500,000 1,200,000 1,000,000 450,000 $ 850,000 $4,000,000 0 (C) Required: Prepare a horizontal analysis for 2022 using 2021 as the base year. (Decreases should be indicated with a minus sign. Round your percentage answers to 1 decimal place.) 300,000 6,000,000 2,000,000 $ 4,000,000 Increase (Decrease) Amount % Increase (Decrease) Amount % %
Transcribed Image Text:Question (1) The income statements for Federer Sports Apparel for 2022 and 2021 are presented below. (A) Required: Prepare a vertical analysis of the data for 2022 and 2021. (Round your percentage answers to 1 decimal place.) Net sales Cost of goods sold Gross profit Operating expenses Depreciation expense Inventory write-down Loss (litigation) Income before tax Income tax expense Net income Net sales Cost of goods sold Gross profit Operating expenses Depreciation expense Inventory write-down Loss (litigation) Income before tax Income tax expense Net income FEDERER SPORTS APPAREL Net sales Cost of goods sold Gross profit Operating expenses Depreciation expense Inventory write-down Loss (litigation) Income Statement For the Years Ended December 31 Income before tax Income tax expense Net income Amount $18,800,000 $ 2022 13,200,000 5,600,000 1,600,000 1,000,000 200,000 1,500,000 1,300,000 450,000 850,000 % (B) Required: Prepare a horizontal analysis for 2022 using 2021 as the base year. (Decreases should be indicated with a minus sign. Round your percentage answers to 1 decimal place.) FEDERER SPORTS APPAREL $ Income Statement For the Years Ended December 31 Year 2022 2021 $ 18,800,000 $ 15,500,000 13,200,000 7,000,000 5,600,000 8,500,000 1,600,000 1,200,000 1,000,000 1,000,000 200,000 1,500,000 1,300,000 450,000 850,000 $4,000,000 300,000 6,000,000 2,000,000 FEDERER SPORTS APPAREL Income Statement For the Years Ended December 31 Year 2022 2021 $ 18,800,000 $15,500,000| 13,200,000 7,000,000 5,600,000 8,500,000 1,600,000 1,200,000 1,000,000 1,000,000 200,000 1,500,000 1,300,000 2021 300,000 6,000,000 2,000,000 Amount $ 15,500,000 7,000,000 8,500,000 1,200,000 1,000,000 450,000 $ 850,000 $4,000,000 0 (C) Required: Prepare a horizontal analysis for 2022 using 2021 as the base year. (Decreases should be indicated with a minus sign. Round your percentage answers to 1 decimal place.) 300,000 6,000,000 2,000,000 $ 4,000,000 Increase (Decrease) Amount % Increase (Decrease) Amount % %
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