The comparative income statements of

McMahonMcMahon

Music Co. follow:

Requirement

Prepare a horizontal analysis of the comparative income statements of

McMahonMcMahon

Music Co. Round percentage changes to the nearest one-tenth percent. (Use a minus sign or parentheses for decreases. Round percentage changes to the nearest one-tenth percent, X.X%.)

McMahon Music Co.
Horizontal Analysis of Comparative Income Statements
Years Ended December 31, 2018 and 2017
			Increase (Decrease)
	2018	2017	Amount	Percentage
Total revenue	$852,000	$912,000			%
Expenses:
Cost of goods sold	402,000	408,000			%
Selling and general expenses	232,000	264,000			%
Interest expense	9,200	10,500			%
Income tax expense	83,000	84,000			%
Total expenses	726,200	766,500			%
Net income	$125,800	$145,500			%

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Data Table

McMahon Music Co.
Comparative Income Statements
Years Ended December 31, 2018 and 2017
	2018	2017
Total revenue	$852,000	$912,000
Expenses:
Cost of goods sold	$402,000	$408,000
Selling and general expenses	232,000	264,000
Interest expense	9,200	10,500
Income tax expense	83,000	84,000
Total expenses	726,200	766,500
Net income	$125,800	$145,500

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