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Income statements for Jordan Company for 2018 and 2019 follow: JORDAN COMPANY Income Statements 2019 2018 Sales $201,000 $181,000 Cost of goods sold 143,200 121,200
Income statements for Jordan Company for 2018 and 2019 follow: JORDAN COMPANY Income Statements 2019 2018 Sales $201,000 $181,000 Cost of goods sold 143,200 121,200 Selling expenses 21,300 19,300 Administrative 12,700 14,700 expenses Interest expense 3,700 5,700 Total expenses $180,900 $160,900 Income before 20,100 20,100 taxes Income taxes 6,400 3,300 expense Net income $ 13,700 $ 16,800 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between 2018 and 2019. 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 Required A B Perform a horizontal analysis, showing the percentage change in each income statement component between 2018 and 2019. (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).) JORDAN COMPANY Horizontal Analysis of Income Statements Percentage Change over 2018 Sales % Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (loss) % Complete this question by entering your answers in the tabs below. Required Required A B Perform a vertical analysis, showing each income statement component as a percentage 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).) Show less JORDAN COMPANY Vertical Analysis of Income Statements Percentage Percentage of Sales 2019 of Sales 2018 Sales % % Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income % %
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