With the give statement of comprehensive income below, conduct a horizontal analysis. YEAR 1YEAR 2Net Sales9,937,65012,937,0003,387,6506,550,000Less: Cost of Goods Sold4,925,000Gross profit8,012,000Less: ExpensesSalaries Expense3,410,0003,938,500960,000Rent ExpenseInsurance Expence1,050,000250,000310,750Utilities Expense160,000175,500Miscellaneous Expense80,00097,800Advertising Expense140,000155,000Supplies Expense180,000198,000Depreciation Expense- Office Equipment160,000185,000Interest Expense60,00068,500Net Income1,150,0001,832,950

Formula: Increase / Decrease = Year 2 Amount - Year 1 Amount

YEAR 1 YEAR 2 Net Sales 9,937,650 12,937,000 Less: Cost of Goods Sold 3,387,650 4,925,000 Gross profit 6,550,000 8,012,000 Less: Expenses Salaries Expense 3,410,000 3,938,500 Rent Expense 960,000 1,050,000 Insurance Expence 250,000 310,750 Utilities Expense 160,000 175,500

YEAR 1 YEAR 2 Net Sales 9,937,650 12,937,000 Less: Cost of Goods Sold 3,387,650 4,925,000 Gross profit 6,550,000 8,012,000 Less: Expenses Salaries Expense 3,410,000 3,938,500 Rent Expense 960,000 1,050,000 Insurance Expence 250,000 310,750 Utilities Expense 160,000 175,500

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter1: The Role Of Accounting In Business

Section: Chapter Questions

Problem 1.4.2MBA: Return on assets The following data (in millions) were adapted from recent financial statements of...

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