E12-16A. (Learning Objective 1: Performing horizontal analysis of an Income Statement)

Prepare a horizontal analysis of the comparative Income Statements of Sensible Music Co.

Round percentage changes to the nearest one-tenth percent (three decimal places).

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A1 1 2 3 Total revenue Sensible Music Co. Comparative Income Statements Years Ended December 31, 20X6 and 20X5 4 Expenses: 34567896 Cost of goods sold Selling and general expenses Interest expense Income tax expense Total expenses 10 Net income 11 20X6 $ 855,000 20X5 $915,000 $ 403,000 $ 409,000 233,000 262,000 9,300 10,600 84,000 85,000 729,300 766,600 $ 125,700 $ 148,400