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Exercise 13-3A Horizontal and vertical analysis LO 13-1 Income statements for Campbell Company for Year 3 and Year 4 follow: CAMPBELL COMPANY Income Statements Year
Exercise 13-3A Horizontal and vertical analysis LO 13-1
Income statements for Campbell Company for Year 3 and Year 4 follow:
CAMPBELL COMPANY Income Statements | |||||||
Year 4 | Year 3 | ||||||
Sales | $ | 200,600 | $ | 180,600 | |||
Cost of goods sold | 143,800 | 121,800 | |||||
Selling expenses | 20,700 | 18,700 | |||||
Administrative expenses | 12,600 | 14,600 | |||||
Interest expense | 3,400 | 5,400 | |||||
Total expenses | $ | 180,500 | $ | 160,500 | |||
Income before taxes | 20,100 | 20,100 | |||||
Income taxes expense | 6,800 | 3,900 | |||||
Net income | $ | 13,300 | $ | 16,200 | |||
Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.
sales | percentage( | % |
cost of goods sold | ||
selling expenses | ||
administrative expenses | ||
interest expense | ||
total expenses | ||
income before taxes | ||
income taxes expense | ||
net income (loss) | ||
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