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	$652,800			$510,000
Cost of goods sold	554,400			440,000
Gross profit	$98,400			$70,000
Selling expenses	$29,500			$25,000
Administrative expenses	26,460			21,000
Total operating expenses	$55,960			$46,000
Income before income tax	$42,440			$24,000
Income tax expenses	17,000			9,600
Net income	$25,440			$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	$652,800	$510,000	$	%
Cost of goods sold	554,400	440,000		%
Gross profit	$98,400	$70,000	$	%
Selling expenses	29,500	25,000		%
Administrative expenses	26,460	21,000		%
Total operating expenses	$55,960	$46,000	$	%
Income before income tax	$42,440	$24,000	$	%
Income tax expense	17,000	9,600		%
Net income	$25,440	$14,400	$	%