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Horizontal Analysis of the Income Statement Income statement data for Boone Company for two recent years ended December 31, are as follows: Current Year Previous

Horizontal Analysis of the Income Statement

Income statement data for Boone Company for two recent years ended December 31, are as follows:

Current Year Previous Year
Sales $589,500 $450,000
Cost of goods sold 490,200 380,000
Gross profit $99,300 $70,000
Selling expenses $30,250 $25,000
Administrative expenses 27,090 21,000
Total operating expenses $57,340 $46,000
Income before income tax $41,960 $24,000
Income tax expenses 16,800 9,600
Net income $25,160 $14,400

a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place.

Boone Company
Comparative Income Statement
For the Years Ended December 31
Current year Amount Previous year Amount Increase (Decrease) Amount Increase (Decrease) Percent
Sales $589,500 $450,000 $ %
Cost of goods sold 490,200 380,000 %
Gross profit $99,300 $70,000 $ %
Selling expenses 30,250 25,000 %
Administrative expenses 27,090 21,000 %
Total operating expenses $57,340 $46,000 $ %
Income before income tax $41,960 $24,000 $ %
Income tax expense 16,800 9,600 %
Net income $25,160 $14,400 $ %

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