Requirement 1. Prepare a horizontal analysis of the comparative income statement of McCormick Designs, Inc. Round percentage changes to one decimal place. (Round the percentages to one decimal place, X.X%. Use a minus sign or parentheses to indicate a decrease.) McCormick Designs, Inc. Comparative Income Statement Years Ended December 31, 2024 and 2023 Increase (Decrease) 2024 2023 Amount Percentage Net Sales Revenue $429,000 $373,750 % Expenses: Cost of Goods Sold 204,000 190,450 % Selling and Administrative Expenses 96,000 91,050 % Other Expenses 7,450 5,750 % Total Expenses 307,450 287,250 % Net Income $121,550 $86,500 % Requirement 2. Why did 2024 net income increase by a higher percentage than net sales revenue? Net income increased by a higher percentage than total net sales revenue during 2024 because ▼ .
Requirement 1. Prepare a horizontal analysis of the comparative income statement of McCormick Designs, Inc. Round percentage changes to one decimal place. (Round the percentages to one decimal place, X.X%. Use a minus sign or parentheses to indicate a decrease.) McCormick Designs, Inc. Comparative Income Statement Years Ended December 31, 2024 and 2023 Increase (Decrease) 2024 2023 Amount Percentage Net Sales Revenue $429,000 $373,750 % Expenses: Cost of Goods Sold 204,000 190,450 % Selling and Administrative Expenses 96,000 91,050 % Other Expenses 7,450 5,750 % Total Expenses 307,450 287,250 % Net Income $121,550 $86,500 % Requirement 2. Why did 2024 net income increase by a higher percentage than net sales revenue? Net income increased by a higher percentage than total net sales revenue during 2024 because ▼ .
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Requirement 1. Prepare a horizontal analysis of the comparative income statement of McCormick Designs, Inc. Round percentage changes to one decimal place. (Round the percentages to one decimal place, X.X%. Use a minus sign or parentheses to indicate a decrease.)
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McCormick Designs, Inc.
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Comparative Income Statement
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Years Ended December 31, 2024 and 2023
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Increase (Decrease)
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2024
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2023
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Amount
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Percentage
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Net Sales Revenue
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$429,000
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$373,750
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%
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Expenses:
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Cost of Goods Sold
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204,000
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190,450
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%
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Selling and Administrative Expenses
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96,000
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91,050
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%
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Other Expenses
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7,450
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5,750
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%
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Total Expenses
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307,450
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287,250
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%
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Net Income
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$121,550
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$86,500
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%
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Requirement 2. Why did 2024 net income increase by a higher percentage than net sales revenue?
Net income increased by a higher percentage than total net sales revenue during 2024 because
.
▼
Expert Solution
Step 1
In the given question, we are supposed to prepare a horizontal analysis of the comparative income statement.
comparative income statement helps us to identify financial trends and measure performance.
Where the year 2024 will considered as a Current Year and 2023 will be considered as a base year.
Amount of difference will be increase or decrease from current to base year.
Percentage change can be calculated by amount of difference divided by Base year.
The comparative income statement is provided below.
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