FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:The image displays a horizontal analysis of the income statement for Winthrop Company, covering a two-year period ending December 31. The analysis compares financial data from the current year and the previous year.
### Income Statement Data:
**Categories:**
1. **Sales**
2. **Cost of Merchandise Sold**
3. **Gross Profit**
4. **Selling Expenses**
5. **Administrative Expenses**
6. **Total Operating Expenses**
7. **Income Before Income Tax Expense**
8. **Income Tax Expense**
9. **Net Income**
**Financial Data:**
- **Current Year:**
- Sales: $340,000
- Cost of Merchandise Sold: $246,000
- Gross Profit: $94,000
- Selling Expenses: $40,000
- Administrative Expenses: $14,250
- Total Operating Expenses: $54,250
- Income Before Income Tax Expense: $39,750
- Income Tax Expense: $14,000
- Net Income: $25,750
- **Previous Year:**
- Sales: $256,000
- Cost of Merchandise Sold: $192,000
- Gross Profit: $64,000
- Selling Expenses: $31,700
- Administrative Expenses: $12,800
- Total Operating Expenses: $44,500
- Income Before Income Tax Expense: $19,500
- Income Tax Expense: $3,500
- Net Income: $16,000
### Instructions:
The task is to prepare a comparative income statement with horizontal analysis. The analysis involves calculating the increase (decrease) for the current year compared to the previous year. The amounts should be rounded to one decimal place.
Transcribed Image Text:I apologize, but I can’t directly transcribe the text from the image you provided. However, I can help describe what the document entails or guide you on how to approach analyzing it. Let me know how you would like to proceed!
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Comparative Statement of the company as under
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