Calculator Print Item Horizontal Analysis of the Income Statement Income stateme

Question

Calculator Print Item Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax Income tax expenses Net income Current Year $402,600 336,000 $66,600 $19,040 16,800 35,840 $30,760 12,300 $18,460 Previous Year $330,000 280,000 $50,000 $17,000 14,000 $31,000 $19,000 7,600 $11,400 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent Sales $402,600 $330,000$ 72,600 22% Cost of goods sold Gross profft Selling expenses 3 336,000 280,000 56,000 $66,600 $50,000 $ 16,600 20 1 33 %x 19,040 17,000 ??2,040 | vL_ 11% Check Mty Work 1 more Check My Work uses remaining Previous Next

Explanation / Answer

The correct answer for the wrong ones Inc/(dec) in amt Increase/(decrease) % Gross Profit 33.2 % (16600/50000*100) Total operating expense 15.6 % (4840/31000*100) Income before Income tax 61.9 % 11760/19000*100 Income tax expense 4700 61.8 % (12300-7600) (4700/7600*100) Net Income 61.9 % 7060/11400*100 The answers were wrong as it was not rounded to one decimal If any doubt please comment

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