Chapter 13, Problem 13.1ME

Calculations for Horizontal Analyses

Using the following income statements, perform the calculations needed for horizontal analyses. Round percentages to one decimal place.

LOCKEY FENCING CORPORATION Income Statements For the Years Ended December 31
	Current	Previous
Net Sales	$100,000	$75,000
Cost of Goods Sold	58,000	45,000
Gross Profit	42,000	30,000
Selling, General, and Administrative Expenses	9,000	4,500
Income from Operations	33,000	25,500
Interest Expense	3,000	3,750
Income before Income Tax	30,000	21,750
Income Tax Expense	9,000	6,525
Net Income	$ 21,000	$15,225