value 5.00 points The income statements for Urban Outfits, Inc. are presented be

ID: 2592312 • Letter: V

Question

value 5.00 points The income statements for Urban Outfits, Inc. are presented below: Urban Outfits, Inc. Income Statements Year Ended December 31 Current Sales revenue Cost of goods sold Gross proft Operating and other expenses Interest expense Income tax expense YearPrior Year $728,699 $785,059 359,329 389,228 369,370 395,831 24,604 135,173 7,400 43,500 44,800 15,000 Net income $186,266 $208,458 Prepare a horizontal analysis of the income statement above. (Round your answers to the nearest whole percent.) URBAN OUTFITS, INC Income Statements Year Ended December 31 Increase (Decrease) Current Prior Year Amount Percent (%) Year Sales Revenue Cost of Goods Sold Gross Profit Operating and Other Expenses Interest Expense Income Tax Expense Net Income $728,699 $785,059 359,329389,228 369,370 395,831 24,604 135,173 7,400 4,800 186,266 208,458 15,000 3,5004

Explanation / Answer

Increase (Decrease)

Current Year

Prior Year

Amount

Percent (%)

Sales Revenue

728699

785059

728699-785059 =(56360)

(56360)/785059 *100 = -7%

Cost of goods sold

359329

389228

359329-389228 = (29899)

-29899/389228 *100 = -8%

Gross Profit

369370

395831

369370-395831 = (26461)

-26461/395831 *100 = -7%

Operating and other expenses

124604

135173

124604-135173 = (10569)

-10569/135173 *100 = -8%

Interest Expense

15000

7400

15000 – 7400 = 7600

7600/7400 *100 = 103%

Income tax expense

43500

44800

43500 – 44800 = (1300)

-1300/44800 *100 = -3%

Net Income

186266

208458

186266 – 208458 = -22192

-22192/208458 *100 = -11%