For 2008, Doane Inc. reported its most significant increase in net income in years. At the end of the year, Jeff Newton, the president, is presented with the following condensed comparative income statement:

Instructions
1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 2007 as the base year. Round to one decimal place.
2. To the extent the data permit, comment on the significant relationships revealed by the horizontal analysis prepared in(1).

Transcribed Image Text:

Doane Inc. Comparative Income Statement For the Years Ended December 31, 2008 and 2007 2008 2007 Sales $91,500 1,440 $90,060 $73,200 1,200 $72,000 42,000 9,660 $30,000 14,400 9,600 $24,000 6,000 600 6,600 1,440 5,160 Net sales __ . . . $3 600 Income tax expense 2,880