Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Horizontal Analysis of Income Statement For 2012, Macklin Inc. reported a significant decrease in net income. At the end of the year, John Mayer,

image text in transcribedimage text in transcribed

Horizontal Analysis of Income Statement For 2012, 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, 2012 and 20Y1 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Other revenue 20Y2 20Y1 $355,511 $313,000 (256,000) (200,000) $99,511 $113,000 $(35,100) $(26,000) (21,280) (17,000) $(56,380) $(43,000) $43,131 $70,000 1,582 1,300 $44,713 $71,300 (12,500) $32,213 (21,400) $49,900 Income before income tax expense Income tax expense Net income 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. Macklin Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 20Y1 20Y2 20Y1 Increase/ Increase/ (Decrease) (Decrease) Amount Percent Sales Cost of goods sold $355,511 $313,000 $ (256,000) (200,000) % % Gross profit $99,511 $113,000 %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

3rd edition

9780077506902, 78025540, 77506901, 978-0078025549

More Books

Students also viewed these Accounting questions

Question

When are objects on the periphery of your vision most noticeable?

Answered: 1 week ago

Question

What is the purpose of employee knowledge networks?

Answered: 1 week ago

Question

=+3. List three vacation activities that attract senior citizens.

Answered: 1 week ago

Question

A 1-for-10 stock split __________ the price of the stock.

Answered: 1 week ago