The comparative condensed income statements of Emley Corporation are shown below. EMLEY CORPORATION Comparative Condensed Income Statements For the Years Ended December 31 2017 2016 Net sales $726,000 $661,000 Cost of goods sold 531,300 462,000 Gross profit 194,700 199,000 Operating expenses 137,500 132,000 Net income $ 57,200 $ 67,000 (a) Prepare a horizontal analysis of the income statement data for Emley Corporation using 2016 as a base. (Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.) EMLEY CORPORATION Condensed Income Statements Increase or (Decrease) During 2017 2017 2016 Amount Percentage Net sales $726,000 $661,000 $ % Cost of goods sold 531,300 462,000 % Gross profit 194,700 199,000 % Operating expenses 137,500 132,000 % Net income $57,200 $67,000 $ % (b) Prepare a vertical analysis of the income statement data for Emley Corporation in columnar form for both years. (Round percentages to 1 decimal place, e.g. 12.3%.) EMLEY CORPORATION Condensed Income Statements 2017 2016 Amount Percent Amount Percent Net sales $726,000 % $661,000 % Cost of goods sold 531,300 % 462,000 % Gross profit 194,700 % 199,000 % Operating expenses 137,500 % 132,000 % Net income $ 57,200 % $ 67,000 %
The comparative condensed income statements of Emley Corporation are shown below. EMLEY CORPORATION Comparative Condensed Income Statements For the Years Ended December 31 2017 2016 Net sales $726,000 $661,000 Cost of goods sold 531,300 462,000 Gross profit 194,700 199,000 Operating expenses 137,500 132,000 Net income $ 57,200 $ 67,000 (a) Prepare a horizontal analysis of the income statement data for Emley Corporation using 2016 as a base. (Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.) EMLEY CORPORATION Condensed Income Statements Increase or (Decrease) During 2017 2017 2016 Amount Percentage Net sales $726,000 $661,000 $ % Cost of goods sold 531,300 462,000 % Gross profit 194,700 199,000 % Operating expenses 137,500 132,000 % Net income $57,200 $67,000 $ % (b) Prepare a vertical analysis of the income statement data for Emley Corporation in columnar form for both years. (Round percentages to 1 decimal place, e.g. 12.3%.) EMLEY CORPORATION Condensed Income Statements 2017 2016 Amount Percent Amount Percent Net sales $726,000 % $661,000 % Cost of goods sold 531,300 % 462,000 % Gross profit 194,700 % 199,000 % Operating expenses 137,500 % 132,000 % Net income $ 57,200 % $ 67,000 %
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 55CE
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