Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Income statements for Benson Company for Year 3 and Year 4 follow: BENSON COMPANY Income Statements Year 4 Sales $200,100 Cost of goods sold 143,000

image text in transcribed
image text in transcribed
image text in transcribed
Income statements for Benson Company for Year 3 and Year 4 follow: BENSON COMPANY Income Statements Year 4 Sales $200,100 Cost of goods sold 143,000 Selling expenses 20,400 Administrative expenses 13,000 Interest expense 3,600 Total expenses $180,000 Income before taxes 20,100 Income taxes expense 7,000 Net income $ 13,100 Year 3 $180,100 121,000 18,400 15,000 5,600 $160,000 20,100 3,200 $ 16,900 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. a Complete this question by entering your answers in the tabs below. Required A Required B 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 percentage answers to 1 decimal place. (I.e., 0.234 should be entered as 23.4).) Required A Required B Perform a horizontal analysis, showing the percentage 4. (Negative answers should be indicated by a minus sie should be entered as 23.4).) BENSON COMPANY Horizontal Analysis of Income Statements Percentage Change over Year 3 Sales % Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (loss) % Rogue Required A Required B Perform a vertical analysis, showing each income statement compor may not add exactly due to rounding. Round your percentage answe 23.4).) A BENSON 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 Interest expense Total expenses Income before taxes Income taxes expense Net income % % de

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Statements Analysis Cases From Corporate India

Authors: Sandeep Goel

1st Edition

1138663921, 9781138663923

More Books

Students also viewed these Accounting questions

Question

How do the events of normal aging affect life satisfaction?

Answered: 1 week ago

Question

CL I P COL Astro- L(1-cas0) Lsing *A=2 L sin(0/2)

Answered: 1 week ago