Prepare a horizontal analysis of the following comparative income statement of R. Hanson, Inc. Round percentage changes to the nearest tenth of a percent.

Requirement
Why did net income increase by a higher percent than total revenues increased during 2014?

Transcribed Image Text:

R. Hanson, Inc Comparative Income Statement Years Ended December 31, 2014 and 2013 2014 2013 Revenue Expenses Cost of Goods Sold Selling and General Expenses Interest Expense Income lax Expense lotal Expenses Net Income $492,000 447,600 242,000 117,600 8,000 50,500 418,100 73,900 226,000 111,600 5,000 44,600 387,200 60,400