Horngren's Accounting (11th Edition)
Horngren's Accounting (11th Edition)
11th Edition
ISBN: 9780133856781
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 17, Problem E17.15E

Performing horizontal analysis−income statement

Data for McCormick Designs, Inc. follow:

MCCORMICK DESIGNS, INC.
Comparative Income Statement
Years Ended December 31, 2016 and 2015

    2016 2015
    Net Sales Revenue $ 431,250 $ 373,000
    Expenses:
    Cost of Goods Sold 202,000 189,000
    Selling and Administrative Expenses 100,050 92.550
    Other Expenses 8,000 2.150
    total Expenses 310,050 283.700
    Net income $ 121,200 $89,300

Requirements

  1. Prepare a horizontal analysis of the comparative income statement of McComrmicDesigns, Inc. Round percentage changes to one decimal place.
  2. Why did 2016 net income increase by a higher percentage than net sales revenue?

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Horngren's Accounting (11th Edition)

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