From the comparative income statement of Carney Company in Figure 22.13 (page 786), do the following:

a. Prepare a horizontal analysis with the amount of increase or decrease during 2016 along with the percent increase or decrease during 2015 (to the nearest tenth of a percent).

b. Vertically analyze the 2016 column of the income statement (to the nearest tenth of a percent).

c. Prepare a common-size comparative income statement (to the nearest tenth of a percent) for 2015 and 2016.

Figure 22.13

Transcribed Image Text:

CARNEY COMPANY COMPARATIVE INCOME STATEMENT FOR YEARS ENDED DECEMBER 31, 2016, AND DECEMBER 31, 2015 December 31 2016 2015 Net Sales Cost of Goods Sold Gross Profit from Sales $298 00000 S 285 195 00000ll 155 103 0101001130 Operating Expenses Selling General and Administrative 30 00 000 50 1700000 25 4700 000 75 5600000 55 800000 13 4800 000 42 Total Operating Expenses Operating Income Less Interest Expense Income Before Taxes Income Taxes Net Income 19|2|0|0|0011 30 0 00 19 200lo0l 16 16 $28 80000 S 25