Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 12-2A Prepare vertical analysis (LO12-1) The income statements for Federer Sports Apparel for 2022 and 2021 are presented below. Required: Prepare a vertical analysis

image text in transcribedimage text in transcribed

Exercise 12-2A Prepare vertical analysis (LO12-1) The income statements for Federer Sports Apparel for 2022 and 2021 are presented below. Required: Prepare a vertical analysis of the data for 2022 and 2021. (Round your percentage answers to 1 decimal place.) % % 100.0 FEDERER SPORTS APPAREL Income Statement For the Years Ended December 31 2022 Amount | $ 18,900,000 100.00 $ 13,154,400 5,745,600 1,625,400 1,020,600 226,800 1,530,900 1,341,900 2021 Amount 15,600,000 7,066,800 8,533,200 1,216,800 1,029,600 Net sales Cost of goods sold Gross profit Operating expenses Depreciation expense Inventory write-down Loss (litigation) Income before tax Income tax expense Net income 312,000 5,974,800 2,028,000 3,946,800 472,500 869,400 Exercise 12-3A Prepare horizontal analysis (LO12-2) The income statements for Federer Sports Apparel for 2022 and 2021 are presented below. Required: Prepare a horizontal analysis for 2022 using 2021 as the base year. (Decreases should be indicated with a minus sign. Round your percentage answers to 1 decimal place.) FEDERER SPORTS APPAREL Increase (Decrease) Amount % Net sales Cost of goods sold Gross profit Operating expenses Depreciation expense Inventory write-down Loss (litigation) Income before tax Income Statement For the Years Ended December 31 Year 2022 2021 19,800,000 $ 16,500,000 12,711,600 7,623,000 7,088,400 8,877,000 1,881,000 1,435,500 1,247,400 1,247,400 415,800 1,782,000 231,000 1,762,200 5,963,100 673,200 2,293,500 $ 1,089,000 $ 3,669,600 Income tax expense Net income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions