Boone Company-Horizontal Analysis
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Horizontal Analysis of the Income Statement
Income statement data for Boone Company for the years ended December 31, 2014 and 2013, are as follows:
2014 | 2013 | ||||
Sales | $508,200 | $420,000 | |||
Cost of goods sold | 440,300 | 370,000 | |||
Gross profit | $67,900 | $50,000 | |||
Selling expenses | $18,870 | $17,000 | |||
Administrative expenses | 16,660 | 14,000 | |||
Total operating expenses | $35,530 | $31,000 | |||
Income before income tax | $32,370 | $19,000 | |||
Income tax expenses | 12,900 | 7,600 | |||
Net income | $19,470 | $11,400 | |||
a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for 2014 when compared with 2013. If required, round to one decimal place. Enter all amounts as positive numbers.
b. The net income for Boone Company increased by 70.8% from 2013 to 2014. This increase was the combined result of an SelectincreasedecreaseCorrect 1 of Item 2 in sales of 21% and SelecthigherlowerCorrect 2 of Item 2 percentage SelectincreasesdecreasesCorrect 3 of Item 2 in total operating expenses.
11 years ago
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boone_company-horizontal_analysis.xlsx
