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.
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.
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.
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