The income statements for Galaxy Tennis for the years ending December 31, 2021 and 2020, are provided below.GALAXY 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$ 6,150,0002,850,0003,300,0001,510,0001,790,00060,0001,850,000390,000$ 1,460,000$ 6,250,0002,920,0003,330,0001,390,0001,940,00085,0002,025,000435,000$ 1,590,000 Required:1. Complete the “Amount” and “%” columns to be used in a horizontal analysis of Galaxy Tennis income statement.2. Discuss the major fluctuations in income statement items during the year.

Income statement: The financial statement which reports revenues and expenses from business…

Answered: The income statements for Galaxy Tennis…

Intermediate Accounting: Reporting And Analysis

3rd Edition

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

Section: Chapter Questions

Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...

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

GALAXY 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	$ 6,150,000 2,850,000 3,300,000 1,510,000 1,790,000 60,000 1,850,000 390,000 $ 1,460,000	$ 6,250,000 2,920,000 3,330,000 1,390,000 1,940,000 85,000 2,025,000 435,000 $ 1,590,000

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

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