Exercise 18-06

Here are the comparative income statements of Delaney Corporation.

Delaney Corporation Comparative Income Statements For the Years Ended December 31
		2020			2019
Net sales		$620,000			$512,000
Cost of goods sold		492,280			428,544
Gross profit		127,720			83,456
Operating expenses		86,800			49,152
Net income		$ 40,920			$ 34,304

(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 For the Months Ended December 31 December 31 For the Years Ended December 31
					Increase or (Decrease) During 2020
	2020		2019		Amount		Percentage
Net sales	$620,000		$512,000		$		%
Cost of goods sold	492,280		428,544				%
Gross profit	127,720		83,456				%
Operating expenses	86,800		49,152				%
Net income	$40,920		$34,304		$		%

(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 For the Years Ended December 31 For the Months Ended December 31 December 31
	2020				2019
	Amount		Percent		Amount		Percent
Net sales	$620,000		%		$512,000		%
Cost of goods sold	492,280		%		428,544		%
Gross profit	127,720		%		83,456		%
Operating expenses	86,800		%		49,152		%
Net income	$ 40,920		%		$ 34,304		%