According to the producer price Index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 38 percent between January and December 2016 Required: 1. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages for the income statement of Computer Tycoon Inc. for the year ended December 31, 2016 2-0. Conduct a vertical analysis by expressing each line as a percentage of total revenues. 2-b. Excluding income tax, Interest, and operating expenses, did Computer Tycoon earn more profit per dollar of sales in 2016 compared to 2015? Complete this question by entering your answers in the tabs below. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages for the income statement of Computer Tycoon Inc. for the year ended December 31, 2016. (Decreases should be indicated by a minus sign. Round percentage values to 1 decimal place.) COMPUTER TYCOON, INC. Income Statements For the Year Ended December 31 2015 Dollars Percentage $ Sales Revenue Cost of Goods Sold Gross Profit Selling General and Administrative Expenses Interest Expense Income before Income Tax Expense Income Tax Expense Net Income 2016 100.000 60,000 40 000 36.000 500 3.500 1,000 2.500 120,000 71,500 48.500 37 000 475 11,025 5,000 6,025 $ Req2A > E13-3 Preparing and Interpreting a Schedule for Horizontal and Vertical Analyses (LO 13-2, LO 13-3, LO 13-5) According to the producer price Index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3 8 percent between January and December 2016 Required: 1. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages for the income statement of Computer Tycoon Inc. for the year ended December 31, 2016 2-0. Conduct a vertical analysis by expressing each line as a percentage of total revenues. 2-b. Excluding income tax, Interest, and operating expenses, did Computer Tycoon earn more profit per dollar of sales in 2016 compared to 2015? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 28 Conduct a vertical analysis by expressing each line as a percentage of total revenues. (Round percentage values to 1 decimal place. COMPUTER TYCOON, INC. Income Statements For the Year Ended December 31 2016 Sales Revenue $ 100 000 $ Cost of Goods Sold 60,000 Gross Pront 43 500 Selling General and Administrative Expenses 36.000 37.000 Interest Expense 500 475 Income before Income Tax Expense 3.500 11025 Income Tax Expense 1.000 5.000 Net Income $ 2,500 5 6 ,025 alala ( Req1 Req 28 >
