Horizontal Analysis of the Income Statement

Income statement data for Cascade Images Inc. for the years ended December $31,20$Y$5$ and $20$Y$4,$ are as follows:

$20$Y$520$Y$4$

Sales $$418,200$ $$340,000$

Cost of goods sold $(365,400)(290,000)$

Gross profit $$52,800$ $$50,000$

Selling expenses $$(14,690)$ $$(13,000)$

Administrative expenses $(13,310)(11,000)$

Total operating expenses $$(28,000)$ $$(24,000)$

Income before income tax $$24,800$ $$26,000$

Income tax expenses $(9,900)(10,400)$

Net income $$14,900$ $$15,600$

Question Content Area

a$.$ Prepare a comparative income statement with horizontal analysis, indicating the increase $($decrease$)$ for $20$Y$5$ when compared with $20$Y$4.$ Round percentage answers to one decimal place.

Cascade Images, Inc.

Comparative Income Statement

For the Years Ended December $31,20$Y$5$ and $20$Y$4$

$20$Y$5$ Amount $20$Y$4$ Amount Incr. $($Decr$.)$

Amount Incr. $($Decr$.)$

Percent

Sales $$418,200$ $$340,000$ $fill in the blank f$2$be$3200$efc$303$d$\_1$

fill in the blank f$2$be$3200$efc$303$d$\_2$

$\%$

Cost of goods sold $(365,400)(290,000)$ fill in the blank f$2$be$3200$efc$303$d$\_3$

fill in the blank f$2$be$3200$efc$303$d$\_4$

$\%$

Gross profit $$52,800$ $$50,000$ $fill in the blank f$2$be$3200$efc$303$d$\_5$

fill in the blank f$2$be$3200$efc$303$d$\_6$

$\%$

Selling expenses $$(14,690)$ $$(13,000)$ $fill in the blank f$2$be$3200$efc$303$d$\_7$

fill in the blank f$2$be$3200$efc$303$d$\_8$

$\%$

Administrative expenses $(13,310)(11,000)$ fill in the blank f$2$be$3200$efc$303$d$\_9$

fill in the blank f$2$be$3200$efc$303$d$\_10$

$\%$

Total operating expenses $$(28,000)$ $$(24,000)$ $fill in the blank f$2$be$3200$efc$303$d$\_11$

fill in the blank f$2$be$3200$efc$303$d$\_12$

$\%$

Income before income tax $$24,800$ $$26,000$ $fill in the blank f$2$be$3200$efc$303$d$\_13$

fill in the blank f$2$be$3200$efc$303$d$\_14$

$\%$

Income tax expenses $(9,900)(10,400)$ fill in the blank f$2$be$3200$efc$303$d$\_15$

fill in the blank f$2$be$3200$efc$303$d$\_16$

$\%$

Net income $$14,900$ $$15,600$ $fill in the blank f$2$be$3200$efc$303$d$\_17$

fill in the blank f$2$be$3200$efc$303$d$\_18$

$\%$