FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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ework: Assignment 1
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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: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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