come statements for Franklin Company for Year 3 and Year 4 follow: FRANKLIN COMPANY Income atements Year 4 Year 3 Sales $201,300 $ 181, 300 Cost of goods sold 143, 600 121,600 Selling expenses 0,100 18, 100 Administrative expenses 12,500 14,500 Interest expense 3,900 5,900 Total expenses 80, 100 160, 100 Income before taxes 21,200 21,200 Income taxes expense 6, 400 3,600 Net income $ 4,800 $ 17,600 Required Perform a horizontal analysis, showing the percentage change in each income atement component between Year 3 and Year 4. Perform a vertical analysis, showing each income atement component as a percentage of sales for each year.

come statements for Franklin Company for Year 3 and Year 4 follow: FRANKLIN COMPANY Income atements Year 4 Year 3 Sales $201,300 $ 181, 300 Cost of goods sold 143, 600 121,600 Selling expenses 0,100 18, 100 Administrative expenses 12,500 14,500 Interest expense 3,900 5,900 Total expenses 80, 100 160, 100 Income before taxes 21,200 21,200 Income taxes expense 6, 400 3,600 Net income $ 4,800 $ 17,600 Required Perform a horizontal analysis, showing the percentage change in each income atement component between Year 3 and Year 4. Perform a vertical analysis, showing each income atement component as a percentage of sales for each year.

Name: Income statements for Franklin Company for Year 3 and Year 4 follow:
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Description: Income statements for Franklin Company for Year 3 and Year 4 follow: FRANKLIN COMPANY IncomeStatements Year 4 Year 3 Sales $ 201,300 $181, 300 Cost of goods sold 143, 600 121,600 Selling expenses20,100 18, 100 Administrative expenses 12,500 14,500 I

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 40E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...

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