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Business
Accounting
Sales Cost of merchandise sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax expense Income tax expenses Net income $732,000 613,600 $118,400 $33,000 29,500 $62,500 $55,900 22,400 $33,500 $610,000 520,000 $90,000 $30,000 25,000 $55,000 $35,000 14,000 $21,000

Sales Cost of merchandise sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax expense Income tax expenses Net income $732,000 613,600 $118,400 $33,000 29,500 $62,500 $55,900 22,400 $33,500 $610,000 520,000 $90,000 $30,000 25,000 $55,000 $35,000 14,000 $21,000

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 39E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...
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Sales Cost of merchandise sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax expense Income tax expenses Net income Sales Cost of merchandise sold Gross profit Selling expenses 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. Administrative expenses Total operating expenses Income before income tax expense Income tax expense Net income profit to be Winthrop Company Comparative Income Statement For the Years Ended December 31 Check My Work Current Year $732,000 613,600 $118,400 $33,000 29,500 $62,500 $55,900 22,400 $33,500 $33,000 29,500 year year Amount Amount Amount $732,000 $610,000 613,600 520,000 $118,400 $62,500 Current Previous Increase Increase (Decrease) (Decrease) Percent $55,900 22,400 $33,500 $90,000 $ $30,000 25,000 $55,000 $ Previous Year $35,000 $ 14,000 $610,000 520,000 $90,000 $30,000 25,000 $55,000 $35,000 14,000 $21,000- $21,000 $ % % % % % % % % b. The net income for Winthrop Company increased between years. This increase was the combined result of an in sales and percentage in cost of merchandise sold. The cost of merchandise sold increased at a rate than the increase in sales, thus causing the percentage increase in gross than the percentage increase in sales. % Previous Next
Transcribed Image Text:Sales Cost of merchandise sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax expense Income tax expenses Net income Sales Cost of merchandise sold Gross profit Selling expenses 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. Administrative expenses Total operating expenses Income before income tax expense Income tax expense Net income profit to be Winthrop Company Comparative Income Statement For the Years Ended December 31 Check My Work Current Year $732,000 613,600 $118,400 $33,000 29,500 $62,500 $55,900 22,400 $33,500 $33,000 29,500 year year Amount Amount Amount $732,000 $610,000 613,600 520,000 $118,400 $62,500 Current Previous Increase Increase (Decrease) (Decrease) Percent $55,900 22,400 $33,500 $90,000 $ $30,000 25,000 $55,000 $ Previous Year $35,000 $ 14,000 $610,000 520,000 $90,000 $30,000 25,000 $55,000 $35,000 14,000 $21,000- $21,000 $ % % % % % % % % b. The net income for Winthrop Company increased between years. This increase was the combined result of an in sales and percentage in cost of merchandise sold. The cost of merchandise sold increased at a rate than the increase in sales, thus causing the percentage increase in gross than the percentage increase in sales. % Previous Next
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