E12-27B. (Learning Objective 1: Performing horizontal analysis of an Income Statement)

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

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

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A1 1 Total revenue 4 Expenses: 2345678 9 10 11 Fashion Music Co. Comparative Income Statements Years Ended December 31, 20X6 and 20X5 Cost of goods sold Selling and general expenses Interest expense Income tax expense Total expenses Net income 20X6 20X5 1,104,000 919,000 489,000 400,450 299,000 269,000 25,500 14,500 107,500 86,850 921,000 770,800 183,000 148,200