Using the following ecome statements, perform the caluclations needed for horizo
ID: 2595792 • Letter: U
Question
Using the following ecome statements, perform the caluclations needed for horizontal analyses. (Decreases should be indicated by a minus sign. Round percentage values to 1 decimal place. I have all of them right except the last four in Percentage. Lockey fencing Corporation, Income; Statements; For the years Ended December 31. Change in : Het Sales; Current $112,000 Previous $81,000 Dollars; percentage 2. Cost of Goods Sold; Current 64,000. previous 48,000 Gross Profit, Current 48,000, Previous 33,000; Selling, General, and Administrative Expenses 6,600; Previous, 3,300; Income from Operations, Current 41,400 Previous, 29,700; Interest Expense, 3,600 Previous 4,950; Income before Income Tax, 37,800 Previous 24,750; Income Tax Expense, Current 11,340 Previous 7,425, Net Income, Current $26,460 Previous $17325.
Explanation / Answer
Particulars
Current
Previous
Net change
Percentage
Net sales
112000
81000
31000
31000/81000 *100 = 38.2%
Cost of Goods Sold
64000
48000
16000
16000/48000 *100 = 33.3%
Gross Profit
48000
33000
15000
15000/33000 *100 = 45.4%
Selling, General, and Administrative Expenses
6600
3300
3300
3300/3300 *100 = 100%
Income from operations
41400
29700
11700
11700/29700 *100 = 39.3%
Interest Expense
3600
4950
-1350
-1350/4950* 100 = -27.2%
Income before Income tax
37800
24750
13050
13050/24750 *100 = 52.7%
Income tax Expense
11340
7425
3915
3915/7425 *100 = 52.7%
Net Income
26460
17325
9135
9135/17325 *100 = 52.7%
Particulars
Current
Previous
Net change
Percentage
Net sales
112000
81000
31000
31000/81000 *100 = 38.2%
Cost of Goods Sold
64000
48000
16000
16000/48000 *100 = 33.3%
Gross Profit
48000
33000
15000
15000/33000 *100 = 45.4%
Selling, General, and Administrative Expenses
6600
3300
3300
3300/3300 *100 = 100%
Income from operations
41400
29700
11700
11700/29700 *100 = 39.3%
Interest Expense
3600
4950
-1350
-1350/4950* 100 = -27.2%
Income before Income tax
37800
24750
13050
13050/24750 *100 = 52.7%
Income tax Expense
11340
7425
3915
3915/7425 *100 = 52.7%
Net Income
26460
17325
9135
9135/17325 *100 = 52.7%
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