McDade Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Υ2 20Υ1 Sales ..... $16,800,000 $15,000,000 Cost of goods sold. Gross profit ..... Selling expenses 11,500,000 10,000,000 $ 5,300,000 $ 1,770,000 $ 5,000,000 $ 1,500,000 Administrative expenses. 1,220,000 1,000,000 $ 2,990,000 $ 2,310,000 $ 2,500,000 $ 2,500,000 Total operating expenses Income from operations Other revenue ... 256,950 225,000 $ 2,566,950 $ 2,725,000 Income before income tax ... Income tax expense 1,500,000 1,413,000 $ 1,153,950 $ 1,225,000 Net income ..
McDade Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Υ2 20Υ1 Sales ..... $16,800,000 $15,000,000 Cost of goods sold. Gross profit ..... Selling expenses 11,500,000 10,000,000 $ 5,300,000 $ 1,770,000 $ 5,000,000 $ 1,500,000 Administrative expenses. 1,220,000 1,000,000 $ 2,990,000 $ 2,310,000 $ 2,500,000 $ 2,500,000 Total operating expenses Income from operations Other revenue ... 256,950 225,000 $ 2,566,950 $ 2,725,000 Income before income tax ... Income tax expense 1,500,000 1,413,000 $ 1,153,950 $ 1,225,000 Net income ..
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter5: Inventories And Cost Of Goods Sold
Section: Chapter Questions
Problem 5.26MCE
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Question
100%
For 20Y2, McDade Company reported a decline in net income. At the end of the year, T. Burrows, the president, is presented with the following condensed comparative income statement:
Please see the attachment for details:
Instructions
1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Round percentages to one decimal place.
2. To the extent the data permit, comment on the significant relationships
revealed by the horizontal analysis prepared in (1).
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