M13-1 Calculations for Horizontal Analyses [LO 13-2] Using the following income

Question

M13-1 Calculations for Horizontal Analyses [LO 13-2] Using the following income statements, perform the calculations needed for horizontal analyses (Decreases should be indicated by a minus sign. Round percentage values to 1 decimal place.) LOCKEY FENCING CORPORATION Income Statements For the Years Ended December 31 Change in Current Previous Dollars Percentage Net Sales Cost of Goods Sold Gross Profit Selling, General, and Administrative Expenses Income from Operations Interest Expense Income before Income Tax Income Tax Expense Net Income $ 106,000 $ 78,000 46,500 31,500 3,900 27,600 4,350 23,250 6,975 $ 23,730 $ 16,275 61,000 45,000 7,800 37,200 3,300 33,900 10,170

Explanation / Answer

Change in Current Previous Dollars Percentage Net sales 106000 78000 28000 35.9% Cost of goods sold 61000 46500 14500 31.2% Gross Profit 45000 31500 13500 42.9% Selling, general and administrative expense 7800 3900 3900 100.0% Income from operations 37200 27600 9600 34.8% Interest expense 3300 4350 -1050 -24.1% Income before income tax 33900 23250 10650 45.8% Income tax expense 10170 6975 3195 45.8% Net income 23730 16275 7455 45.8%

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