Summary information from the financial statements of two companies competing in the same industry follows. Куan Company Company Barco Barco Кyan Company Company Data from the current year-end balance sheets Data from the current year's income statement $770,000 $880,200 585,100 632,500 Assets Sales $ 19,500 $ 34,000 Cost of goods sold 46,500 84,440 132,500 Income tax expense 5,000 290,000 304,400 Basic earnings per share $445,440 $542,450 Cash dividends per share Cash 13,000 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 64,600 Interest expense 7,900 14,800 24,300 6,950 Net income 162,200 210,400 4.51 5/. 11 Total assets 3.81 3.93 | Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Beginning-of-year balance sheet data $ 61,340 $ 93,300 Accounts receivable, net 80,800 180,000 123,300 $445,440 $542,450 101,000 Merchandise inventory 206,000 Total assets 142,150 $ 29,800 $ 54,200 55,600 107, 400 398,000 382,500 206,000 93,600 Common stock, $5 par value 180,000 Total liabilities and equity Retained earnings 98,300

Here are comparative financial statement data for Sandhill Company and Wildhorse Company, two competitors. All data are as of December 31, 2022, and December 31, 2021.     Sandhill Company   Wildhorse Company     2022   2021   2022   2021 Net sales   $1,872,000       $559,000     Cost of goods sold   1,100,736       297,388     Operating expenses   263,952       79,378     Interest expense   9,360       4,472     Income tax expense   54,288       6,149     Current assets   326,000   $314,500   83,500   $78,600 Plant assets (net)   519,600   497,900   141,000   125,100 Current liabilities   66,000   75,800   36,600   29,800 Long-term liabilities   107,800   91,600   30,400   25,600 Common stock, $10 par   498,000   498,000   122,500   122,500 Retained earnings   173,800   147,000   35,000   25,800 (a)     Prepare a vertical analysis of the 2022 income statement data for Sandhill Company and Wildhorse Company. (Round percentages…

Summary information from the financial statements of two companies competing in the same industry follows.    Barco Company Kyan Company   Barco Company Kyan Company Data from the current year-end balance sheets     Data from the current year’s income statement     Assets     Sales $ 780,000 $ 883,200 Cash $ 19,000 $ 37,000 Cost of goods sold 589,100 644,500 Accounts receivable, net 37,400 54,400 Interest expense 8,000 12,000 Merchandise inventory 84,340 136,500 Income tax expense 14,992 24,383 Prepaid expenses 5,800 7,350 Net income 167,908 202,317 Plant assets, net 370,000 310,400 Basic earnings per share 4.66 4.68 Total assets $ 516,540 $ 545,650 Cash dividends per share 3.72 3.99 Liabilities and Equity     Beginning-of-year balance sheet data     Current liabilities $ 67,340 $ 97,300 Accounts receivable, net $ 28,800 $ 50,200 Long-term notes payable 86,800 111,000 Merchandise inventory 59,600 113,400 Common stock, $5 par value 180,000 216,000 Total assets…

Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31 are as follows:       Current Year       Previous Year Sales $2,240,000      $2,000,000    Cost of goods sold (1,925,000)     (1,750,000)   Gross profit $315,000      $250,000    Selling expenses $(152,500)     $(125,000)   Administrative expenses (118,000)     (100,000)   Total operating expenses $(270,500)     $(225,000)   Income before income tax expense $44,500      $25,000    Income tax expense (17,800)     (10,000)   Net income $26,700     $15,000      a.  Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place.