Income statements for Thompson Company for 2011 and 2012 follow. Required a. Perform a horizontal analysis, showing
Question:
Income statements for Thompson Company for 2011 and 2012 follow.
Required
a. Perform a horizontal analysis, showing the percentage change in each income statement component between 2011 and 2012.
b. Perform a vertical analysis, showing each income statement component as a percent of sales for each year.
Transcribed Image Text:
2012 2011 Sales $180,000 $200,000 Cost of goods sold Selling expenses Administrative expenses Interest expense 142,000 20,000 12,000 3,000 $177,000 23,000 120,000 18,000 14,000 5,000 Total expenses 157,000 Income before taxes 23,000 Income taxes expense 5,000 $ 18,000 3,000 $20,000 Net income
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Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
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