Exercise 13-6 (Part Level Submission)

Here are the comparative income statements of Sheffield Corp..

SHEFFIELD CORP.

Comparative Income Statement

For the Years Ended December 31

2017

2016

Net sales

$632,300

$544,800

Cost of goods sold

456,600

415,500

Gross Profit

175,700

129,300

Operating expenses

74,100

44,500

Net income

$101,600

$84,800

(a)

Your answer is correct.

Prepare horizontal analysis of the income statement data for Sheffield Corp., using 2016 as a base.(If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)

SHEFFIELD CORP.

Comparative Income Statement

For the Month Ended December 31

December 31

For the Years Ended December 31

Increase or (Decrease) During 2017

2017

2016

Amount

Percentage

Net sales

$632,300

$544,800

$

%

Cost of goods sold

456,600

415,500

%

Gross Profit

175,700

129,300

%

Operating expenses

74,100

44,500

%

Net income

$101,600

$84,800

$

%

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(b)

Prepare vertical analysis of the income statement data for Sheffield Corp. for both years.(Round percentages to 1 decimal place, e.g. 12.1%.)

SHEFFIELD CORP.

Condensed Income Statements

For the Month Ended December 31

December 31

For the Years Ended December 31

2017

2016

$

Percent

$

Percent

Net sales

$632,300

%

$544,800

%

Cost of goods sold

456,600

%

415,500

%

Gross Profit

175,700

%

129,300

%

Operating expenses

74,100

%

44,500

%

Net income

$101,600

%

$84,800

%