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Income statements for Thornton Company for Year 3 and Year 4 follow: THORNTON COMPANY Income Statements Year 4 Sales $201,300 $181,300 Cost of goods sold Selling expenses Administrative expenses 000'EFT 000'tZI 20,500 18,500 009'ZI 009 5T 3,300 5,300 Interest expense Total expenses 00'6LTS $159, 400 006 Income before taxes 006'1Z 3,400 Income taxes expens3e 6,200 $ 15,700 $ 18,500 Net income Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.

Income statements for Thornton Company for Year 3 and Year 4 follow: THORNTON COMPANY Income Statements Year 4 Sales $201,300 $181,300 Cost of goods sold Selling expenses Administrative expenses 000'EFT 000'tZI 20,500 18,500 009'ZI 009 5T 3,300 5,300 Interest expense Total expenses 00'6LTS $159, 400 006 Income before taxes 006'1Z 3,400 Income taxes expens3e 6,200 $ 15,700 $ 18,500 Net income Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 84.1C
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mheducation.com/ext/map/index.html?_con%3Dcon&external_browser-D0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware%252 ework: Assignment 1 Saved Income statements for Thornton Company for Year 3 and Year 4 follow: THORNTON COMPANY Income Statements Year 3 $201,300 $181,300 Year 4 Sales Cost of goods sold Selling expenses Administrative expenses 000'T 000'tZI 20,500 18,500 009'ZI 009 5T 3,300 $179,400 5,300 $159, 400 Interest expense Total expenses Income before taxes 006'29 006'1 Income taxes expense 6,200 005'E Net income $ 15,700 $ 18,500 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4 b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. Complete this question by entering your answers in the tabs below. Required A Required B the nercentage change in each income statement component between Year 3 and Year
Transcribed Image Text:mheducation.com/ext/map/index.html?_con%3Dcon&external_browser-D0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware%252 ework: Assignment 1 Saved Income statements for Thornton Company for Year 3 and Year 4 follow: THORNTON COMPANY Income Statements Year 3 $201,300 $181,300 Year 4 Sales Cost of goods sold Selling expenses Administrative expenses 000'T 000'tZI 20,500 18,500 009'ZI 009 5T 3,300 $179,400 5,300 $159, 400 Interest expense Total expenses Income before taxes 006'29 006'1 Income taxes expense 6,200 005'E Net income $ 15,700 $ 18,500 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4 b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. Complete this question by entering your answers in the tabs below. Required A Required B the nercentage change in each income statement component between Year 3 and Year
Required A Required B Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 ar 4. (Negative answers should be indicated by a minus sign. Round your percentage answers to 1 decimal place. (i.e., 0. should be entered as 23.4).) THORNTON COMPANY Horizontal Analysis of Income Statements Percentage Change over Year 3 Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (loss) Required B
Transcribed Image Text:Required A Required B Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 ar 4. (Negative answers should be indicated by a minus sign. Round your percentage answers to 1 decimal place. (i.e., 0. should be entered as 23.4).) THORNTON COMPANY Horizontal Analysis of Income Statements Percentage Change over Year 3 Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (loss) Required B
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