=+P9-1 Horizontal analysis for income statement Gbj 1 SPREADSHEET

/ 1. Net sales, 25.1%

increase For 2008, Doane Inc. reported its most significant increase in net income in years. At the end ofthe year, Jeff Newton, the president, is presented with the following condensed comparative income statement:

DOANE INC.

Comparative Income Statement For the Years Ended December 31, 2008 and 2007 2008 2007 Sales $91,500 $73,200 Sales returns and allowances 1,440 1,200 Net sales $90,060 $72,000 Cost of goods sold 50,400 42,000 Gross profit $39,660 $30,000 Selling expenses $16,560 $14,400 Administrative expenses 10,800 9,600 Total operating expenses $27,360 $24,000 Income from operations $12,300 $ 6,000 Other income 600 600 Income before income tax $12,900 $ 6,600 Income tax expense 2,880 1,440 Net income $10,020 $ 5,160 Instructions 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 2007 as the base year. Round to one decimal place.