Income statement for Gaidar Company for 2014 and 2015 follow:

GAIDAR COMPANY Income Statement

2015

2014

Sales

$

201,000

$

181,000

Cost of goods sold

142,600

120,600

Selling expenses

20,400

18,400

Administrative expenses

12,300

14,300

Interest expense

3,200

5,200

Total expenses

$

178,500

$

158,500

Income before taxes

22,500

22,500

Income taxes expense

6,300

4,000

Net income

$

16,200

$

18,500

Required

a.

Perform a horizontal analysis, showing the percentage change in each income statement component between 2014 and 2015. (Negative answers should be indicated by a minus sign.Round your answers to 1 decimal place. (i.e., .234 should be entered as 23.4).)

GAIDAR COMPANY

Horizontal Analysis of Comparative Income Statement

Percentage Change over 2014

Sales%

Cost of goods sold

Selling expenses

Administrative expenses

Interest expense

Total expenses

Income before taxes

Income taxes expense

Net income (loss)%

Perform a vertical analysis, showing each income statement component as a percent of sales for each year. (Percentages may not add exactly due to rounding. Round your answers to 1 decimal place. (i.e., .234 should be entered as 23.4).)

GAIDAR COMPANY
Vertical Analysis of Comparative Income Statement
	Percentage of Sales 2015		Percentage of Sales 2014
Sales		%		%
Cost of goods sold
Selling expenses
Administrative expenses
Interest expense
Total expenses
Income before taxes
Income taxes expense
Net income		%		%