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The income statements for Federer Sports Apparel for 2025 and 2024 are presented below. Required: Prepare a horizontal analysis for 2025 using 2024 as the base year. Note: Decreases should be indicated with a minus sign. 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 Income Statement For the Years Ended December 31 Year $ FEDERER SPORTS APPAREL $ 2025 17,800,000 $ 13,563,600 4,236,400 1,335,000 765,400 17,800 2024 14,500,000 $ 6,409,000 8,091,000 971,500 765,400 1,246,000 203,000 872,200 6,151,100 249,200 1,725,500 623,000 $ 4,425,600 $ Increase (Decrease) Amount 3,300,000 7,154,600 (3,854,600) 363,500 0 17,800 1,043,000 (5,278,900) (1,476,300) (3,802,600) % 22.8 111.6 (47.6) 37.4 0.0 513.8 (85.8) (85.6) (85.9)

The income statements for Federer Sports Apparel for 2025 and 2024 are presented below. Required: Prepare a horizontal analysis for 2025 using 2024 as the base year. Note: Decreases should be indicated with a minus sign. 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 Income Statement For the Years Ended December 31 Year $ FEDERER SPORTS APPAREL $ 2025 17,800,000 $ 13,563,600 4,236,400 1,335,000 765,400 17,800 2024 14,500,000 $ 6,409,000 8,091,000 971,500 765,400 1,246,000 203,000 872,200 6,151,100 249,200 1,725,500 623,000 $ 4,425,600 $ Increase (Decrease) Amount 3,300,000 7,154,600 (3,854,600) 363,500 0 17,800 1,043,000 (5,278,900) (1,476,300) (3,802,600) % 22.8 111.6 (47.6) 37.4 0.0 513.8 (85.8) (85.6) (85.9)

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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The income statements for Federer Sports Apparel for 2025 and 2024 are presented below. Required: Prepare a horizontal analysis for 2025 using 2024 as the base year. Note: Decreases should be indicated with a minus sign. 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 Income Statement For the Years Ended December 31 Year $ FEDERER SPORTS APPAREL $ 2025 2024 17,800,000 $ 14,500,000 $ 13,563,600 6,409,000 4,236,400 8,091,000 1,335,000 765,400 17,800 1,246,000 872,200 249,200 623,000 971,500 765,400 203,000 6,151,100 1,725,500 $ 4,425,600 $ Increase (Decrease) Amount 3,300,000 7,154,600 (3,854,600) 363,500 0 17,800 1,043,000 (5,278,900) (1,476,300) (3,802,600) % 22.8 111.6 (47.6) 37.4 0.0 513.8 (85.8) (85.6) (85.9)
Transcribed Image Text:The income statements for Federer Sports Apparel for 2025 and 2024 are presented below. Required: Prepare a horizontal analysis for 2025 using 2024 as the base year. Note: Decreases should be indicated with a minus sign. 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 Income Statement For the Years Ended December 31 Year $ FEDERER SPORTS APPAREL $ 2025 2024 17,800,000 $ 14,500,000 $ 13,563,600 6,409,000 4,236,400 8,091,000 1,335,000 765,400 17,800 1,246,000 872,200 249,200 623,000 971,500 765,400 203,000 6,151,100 1,725,500 $ 4,425,600 $ Increase (Decrease) Amount 3,300,000 7,154,600 (3,854,600) 363,500 0 17,800 1,043,000 (5,278,900) (1,476,300) (3,802,600) % 22.8 111.6 (47.6) 37.4 0.0 513.8 (85.8) (85.6) (85.9)
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