horizontal analysis 64

Rapid Retail Comparative Statements of Income December 31 increase (Decrease) Horizontal Analysis (in thousands of dollars) 2011 2010 Dollars Percent Net sales $37,500 35 500 Using the information provided in the Table: Cost of goods sold 25,000 24400 Gross profit 12,500 11,100 Selling, general and dministration expense 3,750 3,700 Required: Operating income 8,750 7,400 Interest expense 125 110 a. Complete the increase (decrease) in dollars and percent. Income before taxes 8,625 7,290 Income tax expense 2,500 2,000 b. Comment on trends. Net income $6,125 $5,290 Q Zoom