The income statements for Anything Tennis for the years ending December 31, 2021 and 2020, are provided below.ANYTHING TENNISIncome StatementsFor the years ended December 31 Increase (Decrease) 20212020Amount %Net salesCost of goods soldGross profitOperating expensesOperating incomeOther income (expense)Income before taxIncome tax expenseNet income$ 3,500,0002,150,0001,350,000810,000540,00010,000550,000100,000$ 450,000$ 2,620,0001,380,0001,240,000630,000610,0006,000616,000140,000$ 476,000 Required:1. Complete the “Amount” and “%” columns to be used in a horizontal analysis of the income statements for Anything Tennis.2. Discuss the major fluctuations in income statement items during the year.

Given below are the income statements variance:

Answered: The income statements for Anything…

Intermediate Accounting: Reporting And Analysis

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ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

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Problem 8E: Cost of Goods Sold, Income Statement. and Statement of Comprehensive Income Gaskin Company derives...

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The income statements for Anything Tennis for the years ending December 31, 2021 and 2020, are provided below.

ANYTHING TENNIS Income Statements For the years ended December 31
			Increase (Decrease)
	2021	2020	Amount %
Net sales Cost of goods sold Gross profit Operating expenses Operating income Other income (expense) Income before tax Income tax expense Net income	$ 3,500,000 2,150,000 1,350,000 810,000 540,000 10,000 550,000 100,000 $ 450,000	$ 2,620,000 1,380,000 1,240,000 630,000 610,000 6,000 616,000 140,000 $ 476,000

Required:
1. Complete the “Amount” and “%” columns to be used in a horizontal analysis of the income statements for Anything Tennis.
2. Discuss the major fluctuations in income statement items during the year.

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