During 19x7, Whaley’s Fashion Shoppe put on a big sales pro¬

motion campaign that cost $13,200 more than Whaley’s usually spent for adver¬

tising. The 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 percentages to one decimal place.
2. Comment on the percentages of increase or decrease.

Transcribed Image Text:

Whaley's Fashion Shoppe Comparative Income Statement For Years Ended December 31, 19x7, and December 31, 19x6 Revenue from Sales: Sales Less Sales Returns and Allowances Net Sales Cost of Goods Sold Gross Profit Operating Expenses: Selling Expenses 19x7 19x6 $ 42768000 35040 00 $ 392640 00 223 020 00 S 1696 20 00 S S 74896 00 2208000 96976 00 $ 324 000 00 2400000 S 30000000 17700000 $ 12300000 S S 6040000 1920000 7960000 General Expenses Income from Operations Other Expenses Total Operating Expenses S 72644 00 $ 43 400 00 75000 60000 Net Income 71894 00 $ 42 80000