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Income statements for Rooney Company for Year 3 and Year 4 follow: ROONEY COMPANY Income Statements Year 4 Sales $201,500 Cost of goods sold 142,200
Income statements for Rooney Company for Year 3 and Year 4 follow: ROONEY COMPANY Income Statements Year 4 Sales $201,500 Cost of goods sold 142,200 Selling expenses 20,400 Administrative expenses 12,000 Interest expense 3,300 Total expenses $177,900 Income before taxes 23,600 Income taxes expense 6,800 Net income $ 16,800 Year 3 $181,500 120,200 18,400 14,000 5,300 $157,900 23,600 3,400 $ 20,200 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 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 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. (.e., 0.234 should be entered as 23.4).) 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. (.e., 0.234 should be entered as 23.4).) ROONEY 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 (0) Required Complete this question by entering your answers in the tabs below. Required A Required 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 percentage answers to 1 decimal place. (le, 0.234 should be entered as 23,4)) ROONEY 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 % (Required A Newlines
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