Below is the comparative income statement of Variline, Inc.

Requirements

1. Prepare a horizontal analysis of the comparative income statement of Variline, Inc. Round percentage changes to the nearest tenth of a percent.

2. Why did net income increase by a higher percentage than total revenues increased during 2018?

Transcribed Image Text:

Variline, Inc. Comparative Income Statement Years Ended December 31, 2018 and 2017 2018 2017 $512,000 Revenue $464,300 Expenses: Cost of Goods Sold 257,000 124,300 4,000 236,000 118,800 5,000 37,700 Selling and General Expenses Interest Expense Income Tax 48,800 pense Total Expenses 434,100 $ 77,900 397,500 $ 66,800 Net Income