Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Current Year Previous Year Sales $516,000 $400,000 Cost of goods sold 428,400 340,000 Gross profit $87,600 $60,000 Selling expenses $26,180 $22,000 Administrative expenses 22,860 18,000 Total operating expenses $49,040 $40,000 Income before income tax $38,560 $20,000 Income tax expenses 15,400 8,000 Net income $23,160 $12,000 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.
Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Current Year Previous Year Sales $516,000 $400,000 Cost of goods sold 428,400 340,000 Gross profit $87,600 $60,000 Selling expenses $26,180 $22,000 Administrative expenses 22,860 18,000 Total operating expenses $49,040 $40,000 Income before income tax $38,560 $20,000 Income tax expenses 15,400 8,000 Net income $23,160 $12,000 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.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter5: Accounting For Retail Businesses
Section: Chapter Questions
Problem 41E: Cost of goods sold and related items The following data were extracted from the accounting records...
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Income statement data for Winthrop Company for two recent years ended December 31, are as follows:
Current Year | Previous Year | ||||
Sales | $516,000 | $400,000 | |||
Cost of goods sold | 428,400 | 340,000 | |||
Gross profit | $87,600 | $60,000 | |||
Selling expenses | $26,180 | $22,000 | |||
Administrative expenses | 22,860 | 18,000 | |||
Total operating expenses | $49,040 | $40,000 | |||
Income before income tax | $38,560 | $20,000 | |||
Income tax expenses | 15,400 | 8,000 | |||
Net income | $23,160 | $12,000 |
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.
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