Question 7: Analyse the Financial Statement below and make comments. Village Shipping Inc. Income Statement Horizontal Analysis For the years ending December 31, 2014 and December 31, 2015 Sales Cost of goods sold Gross profit Wages Repairs Rent Taxes Office expenses Total expenses Net Income 2014 500,000 269,000 231,000 163,000 4,150 12,000 17,930 587 197,667 33,333 2015 475,000 265,000 210,000 154,000 5,800 13,000 16,940 1,023 190,763 19,237 % Change 2015 from 2014 -5.00% -1.49% -9.09% -5.52% 39.76% 8.33% -5.52% 14.14% -3.49% -42.29%

Question 7: Analyse the Financial Statement below and make comments. Village Shipping Inc. Income Statement Horizontal Analysis For the years ending December 31, 2014 and December 31, 2015 Sales Cost of goods sold Gross profit Wages Repairs Rent Taxes Office expenses Total expenses Net Income 2014 500,000 269,000 231,000 163,000 4,150 12,000 17,930 587 197,667 33,333 2015 475,000 265,000 210,000 154,000 5,800 13,000 16,940 1,023 190,763 19,237 % Change 2015 from 2014 -5.00% -1.49% -9.09% -5.52% 39.76% 8.33% -5.52% 14.14% -3.49% -42.29%

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.9MCP

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