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A.Perform horizontal analysisand vertical analysis (for 2020only)on the income statement. In your answer please remember to indicate if it is an INCREASE or (DECREASE) and round your findings to ONE decimal place [e.g. -32.996% is - 33.0% or minus 33.0% or (33.0%). B. Comment on the significant changes disclosed by the comparative statement of comprehensive income. What has caused the changes to occur? C. Prepare a statement of retained earnings for the year ended June 30, 2020. (Retained earnings at July 1, 2019 were $58,000, dividends declared and paid during the financial year were $37,000. D. Explain how profits for the year ended June 30, 2019 were $126,700 yet Retained Earnings at July 1, 2019 were only $58,000.

A.Perform horizontal analysisand vertical analysis (for 2020only)on the income statement. In your answer please remember to indicate if it is an INCREASE or (DECREASE) and round your findings to ONE decimal place [e.g. -32.996% is - 33.0% or minus 33.0% or (33.0%). B. Comment on the significant changes disclosed by the comparative statement of comprehensive income. What has caused the changes to occur? C. Prepare a statement of retained earnings for the year ended June 30, 2020. (Retained earnings at July 1, 2019 were $58,000, dividends declared and paid during the financial year were $37,000. D. Explain how profits for the year ended June 30, 2019 were $126,700 yet Retained Earnings at July 1, 2019 were only $58,000.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business
Section: Chapter Questions
Problem 3SEA: MULTIPLE-STEP INCOME STATEMENT Use the following information to prepare a multiple-step income...
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A.Perform horizontal analysisand vertical analysis (for 2020only)on the income statement. In your answer please remember to indicate if it is an INCREASE or (DECREASE) and round your findings to ONE decimal place [e.g. -32.996% is - 33.0% or minus 33.0% or (33.0%).

B. Comment on the significant changes disclosed by the comparative statement of comprehensive income. What has caused the changes to occur?

C. Prepare a statement of retained earnings for the year ended June 30, 2020. (Retained earnings at July 1, 2019 were $58,000, dividends declared and paid during the financial year were $37,000.

D. Explain how profits for the year ended June 30, 2019 were $126,700 yet Retained Earnings at July 1, 2019 were only $58,000.

The comparative income statement for the financial year ended June 30 for Monica Flamingo Farms is as follows: Monica Flamingo Farms Comparative statement of comprehensive income For the years ended 30 June 2020 2019 $ 770,000 487,000 283,000 $ 690,000 345,000 345,000 Sales Revenue Less: Cost of Goods Sold Gross Profit Selling Expenses Administrative expenses Finance Expenses Profit before income tax expense 97,000 71,000 9,000 106,000 31,800 74,200 82,000 79,000 3,000 181,000 54,300 126,700 Income tax expense Profit after income tax expense
Transcribed Image Text:The comparative income statement for the financial year ended June 30 for Monica Flamingo Farms is as follows: Monica Flamingo Farms Comparative statement of comprehensive income For the years ended 30 June 2020 2019 $ 770,000 487,000 283,000 $ 690,000 345,000 345,000 Sales Revenue Less: Cost of Goods Sold Gross Profit Selling Expenses Administrative expenses Finance Expenses Profit before income tax expense 97,000 71,000 9,000 106,000 31,800 74,200 82,000 79,000 3,000 181,000 54,300 126,700 Income tax expense Profit after income tax expense
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