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COOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October 31 2023 2022 Sales $485,625 $462,500 Cost of goods sold 222,694 208,125 Gross profit 262,931
COOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October 31 2023 2022 Sales $485,625 $462,500 Cost of goods sold 222,694 208,125 Gross profit 262,931 254,375 Operating expenses Salaries and wages expense 147,979 146,350 Depreciation expense 17,600 9,100 Other operating expenses 48.186 42,925 Total operating expenses 213,765 198,375 Income from operations 49,166 56,000 Other expenses Interest expense 413 0 Loss on disposal of plant assets 2,500 0 Total other expenses 2,913 0 Income before income tax 46,253 56,000 Income tax expense 9,251 14,000 Net income $37,002 $42,000 Additional information: Natalie and Curtis are thinking about borrowing an additional $20,000 to buy more kitchen equipment. The loan would be repaid over a 4-year period. The terms of the loan provide for equal semi-annual payments of $2,500 on May 1 and November 1 of each year, plus interest of 5% on the outstanding balance. Prepare a horizontal analysis of the income statement for Cookie & Coffee Creations Inc. using 2022 as a base year. (If amount and percentage are a decrease show the numbers as negative, eg.-55,000, -12.25% or (55,000), (12.25%). Round percentages to O decimal places, eg. 12%.) COOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October 31 2023 2022 Difference Horizontal Analysis Sales $485,625 $462,500 $ % Cost of goods sold 222,694 208,125 % Gross profit 262,931 254,375 % Operating expenses Salaries and wages expense 147,979 146,350 % Depreciation expense 17,600 9,100 % Other operating expenses 48,186 42,925 % Total operating expenses 213,765 198,375 % Income from operations 49.166 56,000 % Other expenses Interest expense 413 0 Loss on disposal of plant assets 2,500 0 Total other expenses 2,913 0 Income before income tax 46.253 56,000 % Income tax expense 9,251 14,000 % Net income $37,002 $42,000 Prepare a vertical analysis of the income statement for Cookie & Coffee Creations Inc. for 2023 and 2022. (Round percentages to 2 decimal places, e.g. 12.25%. Do not leave any answer field blank. Enter O for amounts.) COOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October 31 2023 Percentage 2022 Vertical Analysis Sales $485,625 % $462,500 % Cost of goods sold 222,694 % 208,125 % Gross profit 262,931 % 254,375 % Operating expenses Salaries and wages expense 147,979 % 146,350 % Depreciation expense 17,600 % 9,100 % Other operating expenses 48,186 % 42,925 % Total operating expenses 213,765 % 198,375 % Income from operations 49,166 % 56,000 % Other expenses Interest expense 413 % 0 % Loss on disposal of plant assets 2,500 % 0 % Total other expenses 2,913 % % o Income before income tax 46,253 % 56,000 % Income tax expense 9,251 % 14,000 % Net income $37,002 % $42,000 %
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