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1 1 - 1 1 Small Builders Inc 2 January 1st December 31 3 4 Year 1 Year 2 5 Product Income $31,000.00 $27,000.00 6

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1 1 - 1 1 Small Builders Inc 2 January 1st December 31 3 4 Year 1 Year 2 5 Product Income $31,000.00 $27,000.00 6 Service Income $54,000.00 $62,000.00 7 Total Revenue $85,000.00 $89,000.00 8 9 Cost of Goods Sold $34,000.00 $29,500.00 10 11 Expenses 12 13 Advertising Expense $2,400.00 $2,700.00 14 Automobile Expense $500.00 $375.00 15 Insurance Expense $750.00 $750.00 16 Rent Expense $6,600.00 $6,600.00 17 Depreciation Expense $8,300.00 $5,600.00 18 Delivery Expense $877.00 $650.00 19 Office Expense $1,260.00 $956.00 20 Repairs Expense $440.00 $320.00 21 Total Expenses $21,127.00 $17,951.00 22 23 Net Income $29,873.00 $41,549.00 3 Click cell D4 and type % Change as a label to the column. 4 Format cell D4 bold, center, bottom align, and with a bottom border. 5 Click cell D5 and type the formula =(C5-B5)/B5; then press [Enter]. 6 Format cell D5 as Percent Style by clicking cell D5 and selecting the Percent Style tool on the Number group on the Home tab. 7 Use the fill-down procedure to copy the formula from D5 to D17. 8 Delete the formula in cell D8. 9. Format cells D6 and D14 with a bottom border. 10 Format cell D17 with a top and double bottom border. 11 Resize column D to 96 pixels. Your completed income statement with horizontal analysis should look like Figure 3.8. 3 D at % Change 9% 11% 7% B 1 What SUP, Inc. 2 Income Statement 3 For the Year Ended 4 12/31/18 12/31/19 5 Sales Revenue $ 850,511.65 $ 925,614.50 6 Less: Cost of Goods Sold 442,619.87 489,547.25 7 Gross Margin 407,891.78 436,067.25 8 Expenses: 9 Advertising 20,654.21 25,124.88 10 Depreciation 22,000.00 23,000.00 11 Interest 40,846.24 38,412.11 12 Other 5,421.55 3,200.74 13 Payroll 115,365.11 126,141.84 14 Utilities 23,541.25 24,788.14 15 Net income before taxes 180,063.42 195,399.54 16 Income taxes 65,218.98 69,451.14 17 Net income $ 114,841.14 S 125,918.40 22% 5% -6% -41% 5% 9% 6% 10% 12 Click File and then click Save As. (Again, this preserves the original

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