Question
Exercise 9-1 Horizontal analysis Hall Corporation reported the following operating results for two consecutive years. 2014 2013 Sale 1,000,000 800,000 Cost of goods sold 630,000
Exercise 9-1Horizontal analysis
Hall Corporation reported the following operating results for two consecutive years.
2014 2013
| Sale 1,000,000 800,000 Cost of goods sold 630,000 500,000 |
| Gross margin 370,000 300,000 Operating expenses 190,000 125,000 |
| Income before taxes 180,000 175,000 Income taxes 50,000 40,000 |
| Net income 130,000 135,000 |
Required
a.Compute the percentage changes in Hall Corporations income statement components between the two years. Round percentages to one decimal point.
b.Comment on apparent trends revealed by the percentage changes computed in Requirement a.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
