Question: Comment on Review of Vertical & Horizontal Financial Analysis?

2- Comment on Review of vertical and horizontal financial analysis Lincoln Company Comparative Income Statement December 31, 2004 and 2003 2004 2003 Increase (Decrease) Amount Pesent Sales Sales returns Net sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Other income $1,530,500 32,500 $1,498,000 1,043,000 S_455.000 $ 191,000 104,000 $ 295.000 $ 160,000 8.500 $ 168500 6.000 $ 162,500 21.500 S 91.000 $1,234,000 34,000 $1,200,000 820,000 $ 380.000 $ 147,000 97,400 $ 2244,400 $ 135,600 11.000 $ 146,600 12.000 $ 134,600 58.100 $ 76.500 $296,500 (1.500) $298,000) 223,000 $ 75.000 $44,000 6.600 $ 50.600 $ 24,400 (2.500 $ 21,900 (6.000) $ 27.900 24.0% (4.4%) 24.8% 27.2% 19.796 29.9% 6.896 20.7% 18.096 (22.7%) 14.9% (50.0%) 20.7% 23.1% 19.0% Other expense Income before income tax Income tax Net income SOO 2- Comment on Review of vertical and horizontal financial analysis Lincoln Company Comparative Income Statement December 31, 2004 and 2003 2004 2003 Increase (Decrease) Amount Pesent Sales Sales returns Net sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Other income $1,530,500 32,500 $1,498,000 1,043,000 S_455.000 $ 191,000 104,000 $ 295.000 $ 160,000 8.500 $ 168500 6.000 $ 162,500 21.500 S 91.000 $1,234,000 34,000 $1,200,000 820,000 $ 380.000 $ 147,000 97,400 $ 2244,400 $ 135,600 11.000 $ 146,600 12.000 $ 134,600 58.100 $ 76.500 $296,500 (1.500) $298,000) 223,000 $ 75.000 $44,000 6.600 $ 50.600 $ 24,400 (2.500 $ 21,900 (6.000) $ 27.900 24.0% (4.4%) 24.8% 27.2% 19.796 29.9% 6.896 20.7% 18.096 (22.7%) 14.9% (50.0%) 20.7% 23.1% 19.0% Other expense Income before income tax Income tax Net income SOO