EX 14-5 Horizontal analysis of the income statement Obj. 2 Income statement data for Winthrop Company for two recent years ended December 31 are as follows: Sales Cost of goods sold Gross profit Selling expenses b. Administrative expenses Total operating expenses Income before income tax expense Income tax expense Net Income Current Year $2,240,000 (1.925,000) $ 315.000 5 (152,500) [118,000) $ (770,500) $ Previous Year $ 2,000,000 (1,750,000) $ 250,000 $ (125,000) (100,000) $ (225,000) 25,000 (10,000) $ (17,900) $ 26,700 $ 15,000 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. Round percentages to one decimal place. What conclusions can be drawn from the horizontal analysis?

EX 145 Horizontal analysis of the income statement Obj. 2 Income statement data for Winchrop Company for two recent years ended December 31 are as follows: a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. Round percentages to one decimal place. b. What conclusions can be drawn from the horizontal analysid