Here are the comparative income statements of Olympic Corporation:

Instructions

(a) Prepare a horizontal analysis of the income statement data for Olympic Corporationusing 1997 as a base. (Show the amounts of increase or decrease.)

(b) Prepare a vertical analysis of the income statement data for Olympic Corporation forboth years.

Transcribed Image Text:

OLYMPIC CORPORATION Comparative Income Statements For the Years Ended December 31 1998 1997 Net sales $550,000 $550,000 Cost of goods sold 440,000 450,000 Gross profit $110,000 $100,000 Operating expenses 57,200 54,000 Net income $ 52,800 $ 46,000