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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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