eBook Show Me How Calculator E Print Item Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Current Year Previous Year Sales $848,700 $690,000 Cost of goods sold 726,000 600,000 $90,000 $122,700 Gross profit Selling expenses Administrative expenses $35,030 $31,000 31,460 26,000 $66,490 Total operating expenses Income before income tax Income tax expenses $57,000 $33,000 $56,210 22,500 13,200 Net Income $33,710 $19,800 - Prepare a comparative Income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent Sales $848,700 $690,000 96 Cetateni 7260 on ng Check My Work 2 more Check My Work uses remaining eBook Show Me How Calculator Print item year a. Prepare a comparative Income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Previous Increase Increase year (Decrease) (Decrease) Amount Amount Amount Percent Sales $848,700 $690,000 Cost of goods sold 726,000 600,000 Gross profit $122,700 $90,000 % Selling expenses $35,030 $31,000 Administrative expenses 31,460 26,000 Total operating expenses $66,490 $57,000 Income before income tax $56,210 $33,000 $ % Income tax expense 22,500 13,200 9 Net Income $33,710 $19,800 94 in sales and rate than the increase in sales, thus causing the b. The net income for Winthrop Company increased between years. This increase was the combined result of an percentage in cost of goods sold. The cost of goods sold increased at a percentage increase in gross profit to be than the percentage increase in sales Previous Next > Check My Work 2 more Check My Work uses remaining