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Smith Corporation provides the following comparative income statement: Smith Corporation Comparative Income Statement For the Years Ended December 31, 20X3 and 20X2 20X3 20X2 Sales
Smith Corporation provides the following comparative income statement:
| Smith Corporation Comparative | ||
|---|---|---|
| Income Statement | ||
| For the Years Ended December 31, 20X3 and 20X2 | ||
| 20X3 | 20X2 | |
| Sales | $570,000 | $680,000 |
| Cost of goods sold | 200,000 | 170,000 |
| Gross profit | $370,000 | $510,000 |
| Operating expenses | 100,000 | 210,000 |
| EBIT | $270,000 | $300,000 |
(a) Calculate the percentage change using horizontal analysis and (b) evaluate the results.
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Canadian Income Taxation Planning And Decision Making
Authors: Joan Kitunen, William Buckwold
17th Edition 2014-2015 Version
1259094332, 978-1259094330
