During 19x7, Martin’s Floor Coverings put on a sales pro¬

motion campaign that cost $17,090 more than Martin’s usually spent on adver¬

tising. A condensed comparative income statement for the fiscal years ended December 31, 19x7 and December 31, 19x6 is shown here.

Instructions 1. Using horizontal analysis, prepare a comparative income statement for the two-year period. Round off to one decimal place.
2. Comment on the percentages of increase or decrease.

Transcribed Image Text:

Martin's Floor Coverings Comparative Income Statement For Years Ended December 31, 19x7, and December 31, 19x6 Revenue from Sales: 19x7 Sales Less Sales Returns and Allowances $ 4705 60 00 36400 00 Net Sales $ 434160 00 Cost of Goods Sold Gross Profit 278 160 00 156 000 00 Operating Expenses: 19x6 S 346000 00 2600000 S 320000 00 195 200 00 $ 1248 00 00 Selling Expenses General Expenses Total Operating Expenses Income from Operations Other Expenses Net Income $ 8996000| 224 40 00 $ 11240000 43 600 00 560 00 S 430 40 00 $ 6920000 20400 00 $ 8960000 S 35200001 400 00 $ 34800001