Chapter 15.II, Problem 6TIE

To determine

To calculate: The comparative income sheet with horizontal analysis if comparative income statement of Timely Watch Company, Inc. for the year $2015$ and $2016$ is:

Timely Watch Company, Inc. Comparative Income Statement Increase (Decrease)
Revenue	2016($)	2015($)	Amount ($)	Percent (%)
Gross Sales	$1,223,000$	$996,500$
Less: Sales Returns and Allowances	$121,340$	$99,600$
Sales Discounts	$63,120$	$51,237$
Net Sales
Cost of goods sold
Merchandise Inventory Jan. $1$	$311,200$	$331,000$
Purchases	$603,290$	$271,128$
Freight in	$18,640$	$13,400$
Goods available for sale
Less: Merchandise Inventory, Dec. 31	$585,400$	$311,200$
Cost of goods sold
Gross Margin
Operating Expenses
Salaries and benefits	$215,200$	$121,800$
Rents and Utilities	$124,650$	$124,650$
Depreciation	$43,500$	$41,230$
Insurance	$24,970$	$23,800$
Administrative Expenses	$58,200$	$33,900$
Warehouse Expenses	$42,380$	$45,450$
Total Operating Expenses
Income before Taxes
Income tax	$66,280$	$41,670$
Net-Income