Sales Cost of goods sold Gross profit Operating expenses Operating income Interest expense $168,000 90,000 78,000 32,000 $151,000 78,000 73,000 30,000 43,000 46,000 2,000 44,000 11,000 $33,000 3,000 40,000 Income before taxes 10,000 $30,000 Income taxes Net income
Sales Cost of goods sold Gross profit Operating expenses Operating income Interest expense $168,000 90,000 78,000 32,000 $151,000 78,000 73,000 30,000 43,000 46,000 2,000 44,000 11,000 $33,000 3,000 40,000 Income before taxes 10,000 $30,000 Income taxes Net income
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Transcribed Image Text:Below is a comparative income statement for Akerley Co.:
Akerley Co.
Income Statement
For the years ended December 31
2024
2023
$168,000
90,000
78,000
32,000
46,000
2,000
44,000
$151,000
78,000
73,000
Sales
Cost of goods sold
Gross profit
Operating expenses
Opcrating income
Interest expense
30,000
43,000
3,000
40,000
10,000
$30,000
Income before taxes
11,000
$33,000
Income taxes
Net income
Required: USING MS EXCEL
a. Prepare a horizontal analysis for the company calculating the change and percentage change of each
line item from one year to the next. (Round your answers to the nearest tenth of a percent, ie
0.13578 → 13.6%)
b. Which item/items in your analysis would you wish to investigate? Why?
Expert Solution
Step 1 Introduction
Horizontal analysis is an analysis carried out horizontally between the line of times which is calculated as the change in item occurred compared to last year.
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