Income statements for Munoz Company for 2018 and 2019 follow: MUNOZ COMPANYIncome Statements 2019 2018Sales$201,300 $181,300 Cost of goods sold 143,300 121,300 Selling expenses 21,000 19,000 Administrative expenses 12,900 14,900 Interest expense 3,100 5,100 Total expenses$180,300 $160,300 Income before taxes 21,000 21,000 Income taxes expense 5,500 3,100 Net income$15,500 $17,900 RequiredPerform a horizontal analysis, showing the percentage change in each income statement component between 2018 and 2019.Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.Complete this question by entering your answers in the tabs below.

The financial statement analysis can be done in two different ways. One of which is comparing the…

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Fundamentals of Financial Management (MindTap Course List)

15th Edition

ISBN:9781337395250

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter4: Analysis Of Financial Statements

Section: Chapter Questions

Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...

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Income statements for Munoz Company for 2018 and 2019 follow:

MUNOZ COMPANY Income Statements
	2019		2018
Sales	$	201,300		$	181,300
Cost of goods sold		143,300			121,300
Selling expenses		21,000			19,000
Administrative expenses		12,900			14,900
Interest expense		3,100			5,100
Total expenses	$	180,300		$	160,300
Income before taxes		21,000			21,000
Income taxes expense		5,500			3,100
Net income	$	15,500		$	17,900

Required

Perform a horizontal analysis, showing the percentage change in each income statement component between 2018 and 2019.
Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.

Complete this question by entering your answers in the tabs below.

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