Horizontal analysis of the income statement Income Statement on Incon Statement Preserve come story to other starten om preverstone decimal place Cortive For the wind December IRE Dec Previous Year $120.000 149.400.00 $933.000 154.000 $200.000 SH0.000 $1.050.00 Gronpro Sing Ames Sotalog Income before 125.000 570.000.00 $116000 5140 11.401600 $135.300 S16000 6000 $9200000 Nr Horizontal analysis of the income statement tatuution witome statement Final Question Fration What conclusions can be drawn from the horizontal analysis? Round the answers to one decimal place The net income for Winthrop Company increased by % between years. This increase was the combined result of an increase v in sales of % and percentage in cost of goods sold increase The cost of goods sold increased at a slower rate than the increase in sales, thus causing the percentage increase in gross profit to be greater increase in sales. than the percentage Feedback *Check My Work view the relations the have and the effect the fron show of the Instructions Income Statement Final Question Instructions Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. The Tannenhill's data are expressed in dollars. The electronics industry averages are expressed in percentages. 1 > Tannenhill Company $5,900,000.00 Electronics Industry Average 100.0% 2 Sales 3,038,500.00 57.5 42.5% 3 Cost of goods sold 4 Gross profit Selling expenses 6 Administrative expenses 7 Total operating expenses Operating income 22.5% 130 $2.861,500.00 $1,563,500.00 885,000.00 $2,448,500.00 $415,000.00 104,000.00 35.5% 70% 9 Other income 18 10 $517000.00 8.8% Check My Work Instructions Income Statement Final Question Instructions 6 Administrative expenses 13.0 Total operating expenses + Operating income 885,000.00 $2,448,500.00 35.5% $413,000.00 70% 9 Other income 18 10 104,000.00 $517,000.00 8.8% 11 Other expense 74,000.00 1.3 12 Income before income tax $143.000.00 7.5% 15 Income tax expense 80,000.00 1.4 14 Net Income $363,000.00 6.1% A. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. Round percentages to one decimal place. Enter all amounts as positive numbers B. As far as the data permit, comment on significant relationships revealed by the comparisons. Check My Work Common-sized income statement Instructions Income Statement Final Question Income Statement Shaded cells have feedback Prepare a common-sized income statement comparing the results of operations for Tannenhil Company with the industry average. Round percentages to one decimal place. Enter al amounts as positive numbers. Question not attempted. Tannenhill Company Score: 0/39 Common-Sized Income Statement For the Year Ended December 31 1 Tannenhill Company Electronics Industry Average 2 Tannenhill Company Amount $5,900,000.00 3,038,500.00 Percent Sales 100.0% 57.5% + Cost of goods sold 5 Grass profit Selling expenses 7 Administrative expenses 42.5% $2,861,500.00 $1,563,500.00 22.5% 885,000.00 13.0% Check My Work Instructions Income Statement Final Question Income Statement Sales $5,900,000.00 Shaded colle have feedback 1000% Cost of goods sold 5 Gross profit 3,058,500.00 57.5% 42.5% 37,861,500.00 $1,563,500.00 885,000.00 22.5% 13.0% Selling expenses Administrative expenses Total operating expenses Operating income 10 Other income $2.48.500.00 35.5% $413,000.00 > 70% 104,000.00 18% 11 88% Other expense 11 Income before income tax $517,000.00 74,000.00 5443.000.00 75% 14 Income tax expense 15. Net income 80,000.00 1.4% $363.000.00 6.1% Points 0/13 Check My Work Horizontal analysis of the income statement Income Statement on Incon Statement Preserve come story to other starten om preverstone decimal place Cortive For the wind December IRE Dec Previous Year $120.000 149.400.00 $933.000 154.000 $200.000 SH0.000 $1.050.00 Gronpro Sing Ames Sotalog Income before 125.000 570.000.00 $116000 5140 11.401600 $135.300 S16000 6000 $9200000 Nr Horizontal analysis of the income statement tatuution witome statement Final Question Fration What conclusions can be drawn from the horizontal analysis? Round the answers to one decimal place The net income for Winthrop Company increased by % between years. This increase was the combined result of an increase v in sales of % and percentage in cost of goods sold increase The cost of goods sold increased at a slower rate than the increase in sales, thus causing the percentage increase in gross profit to be greater increase in sales. than the percentage Feedback *Check My Work view the relations the have and the effect the fron show of the Instructions Income Statement Final Question Instructions Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. The Tannenhill's data are expressed in dollars. The electronics industry averages are expressed in percentages. 1 > Tannenhill Company $5,900,000.00 Electronics Industry Average 100.0% 2 Sales 3,038,500.00 57.5 42.5% 3 Cost of goods sold 4 Gross profit Selling expenses 6 Administrative expenses 7 Total operating expenses Operating income 22.5% 130 $2.861,500.00 $1,563,500.00 885,000.00 $2,448,500.00 $415,000.00 104,000.00 35.5% 70% 9 Other income 18 10 $517000.00 8.8% Check My Work Instructions Income Statement Final Question Instructions 6 Administrative expenses 13.0 Total operating expenses + Operating income 885,000.00 $2,448,500.00 35.5% $413,000.00 70% 9 Other income 18 10 104,000.00 $517,000.00 8.8% 11 Other expense 74,000.00 1.3 12 Income before income tax $143.000.00 7.5% 15 Income tax expense 80,000.00 1.4 14 Net Income $363,000.00 6.1% A. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. Round percentages to one decimal place. Enter all amounts as positive numbers B. As far as the data permit, comment on significant relationships revealed by the comparisons. Check My Work Common-sized income statement Instructions Income Statement Final Question Income Statement Shaded cells have feedback Prepare a common-sized income statement comparing the results of operations for Tannenhil Company with the industry average. Round percentages to one decimal place. Enter al amounts as positive numbers. Question not attempted. Tannenhill Company Score: 0/39 Common-Sized Income Statement For the Year Ended December 31 1 Tannenhill Company Electronics Industry Average 2 Tannenhill Company Amount $5,900,000.00 3,038,500.00 Percent Sales 100.0% 57.5% + Cost of goods sold 5 Grass profit Selling expenses 7 Administrative expenses 42.5% $2,861,500.00 $1,563,500.00 22.5% 885,000.00 13.0% Check My Work Instructions Income Statement Final Question Income Statement Sales $5,900,000.00 Shaded colle have feedback 1000% Cost of goods sold 5 Gross profit 3,058,500.00 57.5% 42.5% 37,861,500.00 $1,563,500.00 885,000.00 22.5% 13.0% Selling expenses Administrative expenses Total operating expenses Operating income 10 Other income $2.48.500.00 35.5% $413,000.00 > 70% 104,000.00 18% 11 88% Other expense 11 Income before income tax $517,000.00 74,000.00 5443.000.00 75% 14 Income tax expense 15. Net income 80,000.00 1.4% $363.000.00 6.1% Points 0/13 Check My Work