Exercise 14-6

Your answer is partially correct. Try again.

Here are the comparative income statements of Delaney Corporation.

Delaney Corporation Comparative Income Statements For the Years Ended December 31

2020

2019

Net sales

$684,000

$566,000

Cost of goods sold

535,572

466,384

Gross profit

148,428

99,616

Operating expenses

94,392

53,204

Net income

$ 54,036

$ 46,412

(a) Prepare a horizontal analysis of the income statement data for Delaney Corporation, using 2019 as a base. (Show the amounts of increase or decrease.) (Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.)

DELANEY CORPORATION Condensed Income Statements

[Entry field with correct answer]

Increase or (Decrease) During 2020

2020

2019

Amount

Percentage

Net sales

$684,000

$566,000

$

[Entry field with correct answer]

[Entry field with incorrect answer]

%

Cost of goods sold

535,572

466,384

[Entry field with correct answer]

[Entry field with incorrect answer]

%

Gross profit

148,428

99,616

[Entry field with correct answer]

[Entry field with correct answer]

%

Operating expenses

94,392

53,204

[Entry field with correct answer]

[Entry field with incorrect answer]

%

Net income

$54,036

$46,412

$

[Entry field with correct answer]

[Entry field with incorrect answer]

%

(b) Prepare a vertical analysis of the income statement data for Delaney Corporation for both years. (Round percentages to 1 decimal place, e.g. 12.3%.)

DELANEY CORPORATION Condensed Income Statements

[Entry field with correct answer]

2020

2019

Amount

Percent

Amount

Percent

Net sales

$684,000

[Entry field with incorrect answer]

%

$566,000

[Entry field with incorrect answer]

%

Cost of goods sold

535,572

[Entry field with incorrect answer]

%

466,384

[Entry field with incorrect answer]

%

Gross profit

148,428

[Entry field with incorrect answer]

%

99,616

[Entry field with incorrect answer]

%

Operating expenses

94,392

[Entry field with incorrect answer]

%

53,204

[Entry field with incorrect answer]

%

Net income

$ 54,036

[Entry field with incorrect answer]

%

$ 46,412

[Entry field with incorrect answer]

%