=+E9-5 Horizontal analysis ofthe income statement Obj 1 SPREADSHEET V

a. Net income de¬

crease, 53.3%

Income statement data for Web-pics Company for the year ended December 31, 2008 and 2007, are as follows:

Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax Income tax expense Net income 2008 2007

$'117,000 $150,000 56,000 70,000

$ 61,000 $ 80,000

$ 36,000 $ 37,500 12,500 10,000

$ 48,500 $ 47,500

$ 12,500 $ 32,500 2,000 10,000

$ 10,500 $ 22,500