Question
For 20Y2, Macklin Inc. reported a significant decrease in net income. At the end of the year, John Mayer, the president, is presented with the
For 20Y2, Macklin Inc. reported a significant decrease in net income. At the end of the year, John Mayer, the president, is presented with the following condensed comparative income statement: Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $447,780 $370,000 Cost of goods sold (326,600) (230,000) Gross profit $121,180 $140,000 Selling expenses $(47,280) $(31,000) Administrative expenses (27,560) (20,000) Total operating expenses $(74,840) $(51,000) Operating income $46,340 $89,000 Other revenue 1,930 1,600 Income before income tax expense $48,270 $90,600 Income tax expense (13,500) (27,200) Net income $34,770 $63,400 Required: 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Use the minus sign to indicate a decrease in the "Increase/(Decrease)" columns. If required, round percentages to one decimal place.
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