Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Income statements for Baird Company for Year 3 and Year 4 follow: BATRD COMPANY Income Statements Year 4 Sales $200,800 Cost of coods sold 143,989
Income statements for Baird Company for Year 3 and Year 4 follow: BATRD COMPANY Income Statements Year 4 Sales $200,800 Cost of coods sold 143,989 Selling expenses 22,060 Administrative expenses 12,200 Interest expense 3.990 Total expenses $182,800 Incane before taxes 115,00 Incone taxes expense 5, 302 Net Income Year 3 $180,800 121,900 20. 14,200 5.900 $162,600 18,00 1,200 $ 15,600 $ 13,500 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. Complete this question by entering your answers in the tabs below. Required A Required B Required A Required B Perform a vertical analysis, showing each income statement component as a percentage of sales fo may not add exactly due to rounding. Round your answers to 1 decimal place. (l.e., .234 should be Perform a horizontal analysis, showing the percentage change in each Income statement component between Year 3 and Year 4. (Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (.e., .234 should be entered as 23.4).) BAIRD COMPANY Horizontal Analysis of Income Statements Percentage Change over Year 3 BAIRD COMPANY Vertical Analysis of Income Statements Percentage of Percentage of Sales Year 4 Sales Year 3 Sales Cost of goods sold Selling expenses Administrative expenses Sales Cost of goods sold Selling expenses Interest expense Administrative expenses Total expenses Interest experise Income before taxes Total expenses Income before laxas Income taxes expense Net income Income taxes expense Net income (loss)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started