Question
Cedar Ltd has provided the following comparative financial highlights for 2022 and 2021: 2022 2021 Analysis $ $ $ % Sales 8,916,000 7,919,000 Cost of
Cedar Ltd has provided the following comparative financial highlights for 2022 and 2021:
|
| 2022 | 2021 | Analysis | |
|
| $ | $ | $ | % |
| Sales | 8,916,000 | 7,919,000 |
|
|
| Cost of sales | 6,939,000 | 6,225,000 |
|
|
|
|
|
|
|
|
| Selling expenses | 846,000 | 810,000 |
|
|
| Other expenses | 414,000 | 440,000 |
|
|
| Profit | 717,000 | 444,000 |
|
|
Required:
- Complete a horizontal analysis of the Income Statement in the table, you need to include gross profit. Calculations for % must be to 2 decimal places.
- What has caused the change in gross profit and profit? Are the changes favourable or unfavourable?
Please take your time just make sure your answer is 100% correct.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
