An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business. To prepare: The income statement.

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Chapter 13, Problem 18E

To determine

Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.

To prepare: The income statement.

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Income statement data for Winthrop Company for two recent years ended December 31 are as follows: Please see the attachment for details: a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. Round percentages to one decimal place.b. What conclusions can be drawn from the horizontal analysis?

The comparative statements of Lily Company are presented here. Net sales Lily Company Income Statements For the Years Ended December 31 Cost of goods sold Gross profit Selling and administrative expenses Income from operations Other expenses and losses Interest expense Income before income taxes Income tax expense Net income Assets Current assets Cash Debt investments (short-term) Accounts receivable (net) Inventory Total current assets Plant assets (net) Total assets Lily Company Balance Sheets December 31 Liabilities and Stockholders' Equity Current liabilities Accounts payable Stockholders' equity Common stock ($5 par) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 282,200 265,700 547,900 $971,800 $1,815,100 1,011,300 2022 803,800 517,400 286,400 2022 267,600 80,016 $ 187,584 $60,100 68,100 18,800 304,000 161,700 465,700 $852,700 116,200 123,100 367,500 604.300 $971,800 $160,300 2021 $64,600 50,200 102,900 114,500 332,200 520,500 $852,700…

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