The income statements for Anything Tennis for the years ending December 31, 2021 and 2020, are provided below. ANYTHING TENNISIncome StatementsFor the years ended December 31 Increase (Decrease) 2021 2020 Amount % Net sales Cost of goods sold Gross profit Operating expenses Operating income Other income (expense) Income before tax Income tax expense Net income $ 3,500,000 2,150,000 1,350,000 810,000 540,000 10,000 550,000 100,000 $ 450,000 $ 2,620,000 1,380,000 1,240,000 630,000 610,000 6,000 616,000 140,000 $ 476,000 Required:1. Complete the “Amount” and “%” columns to be used in a horizontal analysis of the income statements for Anything Tennis.2. Discuss the major fluctuations in income statement items during the year.
The income statements for Anything Tennis for the years ending December 31, 2021 and 2020, are provided below. ANYTHING TENNISIncome StatementsFor the years ended December 31 Increase (Decrease) 2021 2020 Amount % Net sales Cost of goods sold Gross profit Operating expenses Operating income Other income (expense) Income before tax Income tax expense Net income $ 3,500,000 2,150,000 1,350,000 810,000 540,000 10,000 550,000 100,000 $ 450,000 $ 2,620,000 1,380,000 1,240,000 630,000 610,000 6,000 616,000 140,000 $ 476,000 Required:1. Complete the “Amount” and “%” columns to be used in a horizontal analysis of the income statements for Anything Tennis.2. Discuss the major fluctuations in income statement items during the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The income statements for Anything Tennis for the years ending December 31, 2021 and 2020, are provided below.
| ANYTHING TENNIS Income Statements For the years ended December 31 |
|||
| Increase (Decrease) | |||
| 2021 | 2020 | Amount % | |
|
Net sales Cost of goods sold Gross profit Operating expenses Operating income Other income (expense) Income before tax Income tax expense Net income |
$ 3,500,000 2,150,000 1,350,000 810,000 540,000 10,000 550,000 100,000 $ 450,000 |
$ 2,620,000 1,380,000 1,240,000 630,000 610,000 6,000 616,000 140,000 $ 476,000 |
Required:
1. Complete the “Amount” and “%” columns to be used in a horizontal analysis of the income statements for Anything Tennis.
2. Discuss the major fluctuations in income statement items during the year.
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