Question 2

The following table provides the information you need to perform a horizontal analysis for Bradys Used Cars considering their income statements over two years. Fill in the blank cells in order to perform the horizontal analysis (consider the 2010 values the base value at 100%).

	2011	2010	Amount (difference)	Percentage	Percentage (2010)
Revenue	1,498,000	1,200,000	298,000		100%
Cost of goods sold	(1,043,000)	(820,000)			100%
Gross profit		380,000			100%
Total operating expenses	(295,000)	(244,000)		120.9%	100%
Operating profit	160,000				100%
Profit before tax	155,500	134,600			100%
Tax expense	(46,650)	(40,380)		115.5%	100%
Net income		94,220			100%