a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent Sales $660,000 $500,000 $ % Cost of merchandise sold 554,700 430,000 Gross profit $105,300 $70,000 % Selling expenses $31,720 $26,000 $ Administrative expenses 28,600 22,000 Total operating expenses $60,320 $48,000 $ % Income before income tax expense $44,980 $22,000 % Income tax expense 18,000 8,800 Net income $26,980 $13,200 %

a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent Sales $660,000 $500,000 $ % Cost of merchandise sold 554,700 430,000 Gross profit $105,300 $70,000 % Selling expenses $31,720 $26,000 $ Administrative expenses 28,600 22,000 Total operating expenses $60,320 $48,000 $ % Income before income tax expense $44,980 $22,000 % Income tax expense 18,000 8,800 Net income $26,980 $13,200 %

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 11E

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Similar questions

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