Explanation Horizontal Analysis: Horizontal analysis refers to the measurement of percentage change in the comparative financial statements. It compares the items from the financial statements from one to the other years, and indicates the trends. Prepare horizontal analysis for comparative income statement of Corporation ME as follows: Corporation ME Comparative Income Statement For the Year Ended December 31, 20-2 and 20-1 Particulars 20-2 (1) 20-1 (2) Increase (Decrease) Amount (3) Percent ((3)÷(2)×100) Net sales $650,220 $420,600 $229,620 54.6 Cost of goods sold $395,410 $258,668 $136,742 52.9 Gross Profit $254,810 $161,932 $92,878 57.4 Administrative expenses $63,518 $42,288 $21,230 50.2 Selling expenses $65,992 $43,936 $22,056 50.2 Total operating expenses $129,510 $86,224 $43,286 50.2 Operating income $125,300 $75,708 $49,592 65.5 Interest expenses $1,282 $1,204 $13 6.5 Income before income taxes $124,018 $74,504 $49,514 66.5 Income tax expense $31,005 $13,630 $17,375 127.5 Net income $93,013 $60,874 $32,139 52.8 Table (1) Prepare horizontal analysis for Comparative balance sheet of Corporation ME as follows: Corporation ME Comparative Balance Sheet For the Year Ended December 31, 20-2 and 20-1 Particulars 20-2 (1) 20-1 (2) Increase (Decrease) Amount (3) Percent (3÷2)×100 Assets Current assets: Cash $42,900 $22,006 $20,894 94...

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN: 9781305666160

Author: James A. Heintz, Robert W. Parry

Publisher: Cengage Learning

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Question

Chapter 24, Problem 8SPA

To determine

Prepare horizontal analysis of Corporation ME.

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Chapter 24 Solutions

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

Ch. 24 - A comparison of amounts for the same item in the...Ch. 24 - Prob. 2TF Ch. 24 - Prob. 3TF Ch. 24 - Prob. 4TF Ch. 24 - Prob. 5TF Ch. 24 - Prob. 1MC Ch. 24 - Prob. 2MC Ch. 24 - Working capital is a measure of (a) liquidity. (b)...Ch. 24 - Prob. 4MC Ch. 24 - Prob. 5MC

Ch. 24 - Prob. 1CE Ch. 24 - Prob. 2CE Ch. 24 - Compute the following profitability measures for...Ch. 24 - Prob. 4CE Ch. 24 - Prob. 5CE Ch. 24 - Prob. 6CE Ch. 24 - Prob. 1RQ Ch. 24 - Prob. 2RQ Ch. 24 - Prob. 3RQ Ch. 24 - Prob. 4RQ Ch. 24 - Prob. 5RQ Ch. 24 - Prob. 6RQ Ch. 24 - Prob. 7RQ Ch. 24 - Prob. 8RQ Ch. 24 - Prob. 9RQ Ch. 24 - Prob. 10RQ Ch. 24 - Prob. 11RQ Ch. 24 - Prob. 12RQ Ch. 24 - Prob. 13RQ Ch. 24 - Prob. 1SEA Ch. 24 - Prob. 2SEA Ch. 24 - ANALY SIS OF PROFITABILITY Based on the financial...Ch. 24 - ANALY SIS OF LEVERAGE Based on the financial...Ch. 24 - Prob. 5SEA Ch. 24 - Prob. 6SEA Ch. 24 - Prob. 7SEA Ch. 24 - Prob. 8SPA Ch. 24 - Prob. 9SPA Ch. 24 - RATIO ANALYSIS OF COMPARATIVE FINANCIAL STATEMENTS...Ch. 24 - Prob. 1SEB Ch. 24 - ANALYSIS OF ACTIVITY MEASURES Based on the...Ch. 24 - Prob. 3SEB Ch. 24 - Prob. 4SEB Ch. 24 - Prob. 5SEB Ch. 24 - Prob. 6SEB Ch. 24 - Prob. 7SEB Ch. 24 - Prob. 8SPB Ch. 24 - Prob. 9SPB Ch. 24 - RATIO ANALYSIS OF COMPARATIVE FINANCIAL STATEMENTS...Ch. 24 - Prob. 1MP Ch. 24 - This problem challenges you to apply your...

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