FINANCIAL+MANAG.ACCT.
9th Edition
ISBN: 9781260728774
Author: Wild
Publisher: RENT MCG
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Question
Chapter 13, Problem 18E
To determine
Introduction: An income statement is a financial statement that represents the net income earned or net loss incurred by the business during a particular period. It considers all the expenses incurred during the period against the revenue earned the net value determined is known as the profit or loss of the business.
To prepare: The income statement.
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Income statement data for Winthrop Company for two recent years ended December 31 are as follows:
Please see the attachment for details:
a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. Round percentages to one decimal place.b. What conclusions can be drawn from the horizontal analysis?
The comparative statements of Lily Company are presented here.
Net sales
Lily Company
Income Statements
For the Years Ended December 31
Cost of goods sold
Gross profit
Selling and administrative expenses
Income from operations
Other expenses and losses
Interest expense
Income before income taxes
Income tax expense
Net income
Assets
Current assets
Cash
Debt investments (short-term)
Accounts receivable (net)
Inventory
Total current assets
Plant assets (net)
Total assets
Lily Company
Balance Sheets
December 31
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable
Stockholders' equity
Common stock ($5 par)
Retained earnings
Total stockholders' equity
Total liabilities and stockholders' equity
282,200
265,700
547,900
$971,800
$1,815,100
1,011,300
2022
803,800
517,400
286,400
2022
267,600
80,016
$ 187,584
$60,100
68,100
18,800
304,000
161,700
465,700
$852,700
116,200
123,100
367,500
604.300
$971,800
$160,300
2021
$64,600
50,200
102,900
114,500
332,200
520,500
$852,700…
Comparative income statements for Pearle Company are provided:
Required:
Perform a horizontal analysis of Pearle Company's income statement by computing horizontal percentages for each item.
Note: Round your answers to 1 decimal place.
Sales
Less cost of goods sold
Gross margin
Less operating expenses
Income before taxes
Income taxes
Net income
Pearle Company
Comparitive Income Statement
Years Ended December 31,
Year 2
Year 1
$ 600,000 $ 539,700
388,700
361,650
$
211,300
113,950
97,350
42,440
54,910 $
178,050
103,770
74,280
33,412
40,868
Percentage
Change
90.0 %
%
%
%
%
%
%
Chapter 13 Solutions
FINANCIAL+MANAG.ACCT.
Ch. 13 - Prob. 1QSCh. 13 - Prob. 2QSCh. 13 - Prob. 3QSCh. 13 - Prob. 4QSCh. 13 - Prob. 5QSCh. 13 - Prob. 6QSCh. 13 - Prob. 7QSCh. 13 - Prob. 8QSCh. 13 - Prob. 9QSCh. 13 - Prob. 10QS
Ch. 13 - Prob. 11QSCh. 13 - Prob. 12QSCh. 13 - Prob. 13QSCh. 13 - Prob. 14QSCh. 13 - Prob. 15QSCh. 13 - Prob. 16QSCh. 13 - Prob. 17QSCh. 13 - Prob. 18QSCh. 13 - Prob. 19QSCh. 13 - Prob. 20QSCh. 13 - Prob. 21QSCh. 13 - Prob. 22QSCh. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Prob. 3ECh. 13 - Prob. 4ECh. 13 - Prob. 5ECh. 13 - Exercise 13-6 Common-size percents P2
Simon...Ch. 13 - Prob. 7ECh. 13 - Exercise 13-8 Liquidity analysis and...Ch. 13 - Exercise 13-9 Risk and Capital structure analysis...Ch. 13 - Exercise 13-10 Efficiency and Profitability...Ch. 13 - Exercise 13-11 profitability analysis P3 Refer to...Ch. 13 - Prob. 12ECh. 13 - Prob. 13ECh. 13 - Prob. 14ECh. 13 - Prob. 15ECh. 13 - Prob. 16ECh. 13 - Prob. 17ECh. 13 - Prob. 18ECh. 13 - Prob. 1PSACh. 13 - Prob. 2PSACh. 13 - Prob. 3PSACh. 13 - Problem 13-4A Calculation of financial statement...Ch. 13 - Prob. 5PSACh. 13 - Prob. 6PSACh. 13 - Prob. 1PSBCh. 13 - Prob. 2PSBCh. 13 - Prob. 3PSBCh. 13 - Prob. 4PSBCh. 13 - Prob. 5PSBCh. 13 - Problem 13-6BAIncome statement computations and...Ch. 13 - Prob. 13SPCh. 13 - Prob. 1.1AACh. 13 - Prob. 1.2AACh. 13 - Prob. 1.3AACh. 13 - Prob. 2.1AACh. 13 - Prob. 2.2AACh. 13 - Prob. 2.3AACh. 13 - Prob. 3.1AACh. 13 - Prob. 3.2AACh. 13 - Prob. 3.3AACh. 13 - Prob. 1DQCh. 13 - Prob. 2DQCh. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQCh. 13 - Prob. 10DQCh. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - Where on the income statement does a company...Ch. 13 - Prob. 1BTNCh. 13 - Prob. 2BTNCh. 13 - Prob. 3BTNCh. 13 - Prob. 4BTNCh. 13 - ENTREPRENEURIAL DECISION A1 P1 P2 P3 BTN 13-7...
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