ED-15 Performing Horizontal analysis – income statement

ED-15 Performing Horizontal analysis – income statement

Data for Mariner Designs, Inc. follow:

ED-15 MARINER DESIGNS INC.

MARINER DESIGNS, INC.

Comparative income statement

Years Ended December 31,2015 and 2014

                                                            2015                2014
Net sales Revenue                               $431,000         $372,350
Expenses
Cost of good sold                                200,000           187,550
Selling and Administrative Expenses   99,000             91,050
Other Expense                                     8,350               6,850
Total Expenses                                                307,350                       285,450
Net Income                                          $123,650         $86,900

Requirements
1. Prepare a horizontal analysis of the comparative income statement of Mariner
Design inc round percentage changes to one decimal place
2. Why did 2015 net income increase by a higher percentage than net sales
revenue?