Writing Project - Auditing - Part 3
Tico
HorizontalVerticalAnalysis-IncomeStatements.xlsHorizontal Analysis
| California Crunch Company | |||||||||
| Statements of Income | |||||||||
| Increase (Decrease) | |||||||||
| For the year ended December 31, | 2018 | 2017 | Amount | Percent | |||||
| Net Sales (less returns & allowances) | $ 8,353,542 | $ 7,998,832 | $ 354,710 | 4.43% | |||||
| Cost of Goods Sold | $ 3,745,623 | $ 3,621,532 | $ 124,091 | 3.43% | |||||
| Gross Margin | $ 4,607,919 | $ 4,377,300 | $ 230,619 | 5.27% | |||||
| Operating Expenses: | |||||||||
| Advertising | $ 115,325 | $ 113,452 | $ 1,873 | 1.65% | |||||
| Bad Debt Expense | $ 65,232 | $ 62,585 | $ 2,647 | 4.23% | |||||
| Depreciation and Amortization | $ 75,210 | $ 73,565 | $ 1,645 | 2.24% | |||||
| Dues & Subscriptions | $ 600 | $ 575 | $ 25 | 4.35% | |||||
| Insurance | $ 60,800 | $ 60,600 | $ 200 | 0.33% | |||||
| Licenses & Fees | $ 300 | $ 285 | $ 15 | 5.26% | |||||
| Marketing & Promotion | $ 52,632 | $ 51,025 | $ 1,607 | 3.15% | |||||
| Meals and Entertainment | $ 25,030 | $ 24,345 | $ 685 | 2.81% | |||||
| Office Expenses | $ 14,325 | $ 14,652 | $ (327) | -2.23% | |||||
| Office Supplies | $ 24,003 | $ 23,458 | $ 545 | 2.32% | |||||
| Salaries & Wages | $ 2,380,105 | $ 2,192,032 | $ 188,073 | 8.58% | |||||
| Professional Fees | $ 39,700 | $ 38,500 | $ 1,200 | 3.12% | |||||
| Property Taxes | $ 19,220 | $ 19,000 | $ 220 | 1.16% | |||||
| Rent | $ 85,230 | $ 84,360 | $ 870 | 1.03% | |||||
| Repairs & Maintenance | $ 1,450 | $ 1,500 | $ (50) | -3.33% | |||||
| Shipping Delivery | $ 770 | $ 730 | $ 40 | 5.48% | |||||
| Travel Expenses | $ 75,830 | $ 73,560 | $ 2,270 | 3.09% | |||||
| Utilities | $ 35,230 | $ 34,250 | $ 980 | 2.86% | |||||
| Leased Equipment | $ 44,000 | $ 43,750 | $ 250 | 0.57% | |||||
| Other | $ 15,320 | $ 14,756 | $ 564 | 3.82% | |||||
| Total Operating Expenses | $ 3,130,312 | $ 2,926,980 | $ 203,332 | 6.95% | |||||
| Operating Income | $ 1,477,607 | $ 1,450,320 | $ 27,287 | 1.88% | |||||
| Interest Expense | $ 84,658 | $ 83,950 | $ 708 | 0.84% | |||||
| Other Income (interest, royalties) | $ 5,920 | $ 5,725 | $ 195 | 3.41% | |||||
| Income Before Taxes | $ 1,398,869 | $ 1,372,095 | $ 26,774 | 1.95% | |||||
| Income Taxes | $ 489,604 | $ 480,233 | $ 9,371 | 1.95% | |||||
| Net Income | $ 909,265 | $ 891,862 | $ 17,403 | 1.95% |
Vertical Analysis
| California Crunch Company | |||||||||
| Statements of Income | |||||||||
| For the year ended December 31, | 2018 | % of Net Sales | 2017 | % of Net Sales | |||||
| Net Sales (less returns & allowances) | $ 8,353,542 | 100.00% | $ 7,998,832 | 100.00% | |||||
| Cost of Goods Sold | $ 3,745,623 | 44.84% | $ 3,621,532 | 45.28% | |||||
| Gross Margin | $ 4,607,919 | 55.16% | $ 4,377,300 | 54.72% | |||||
| Operating Expenses: | |||||||||
| Advertising | $ 115,325 | 1.38% | $ 113,452 | 1.42% | |||||
| Bad Debt Expense | $ 65,232 | 0.78% | $ 62,585 | 0.78% | |||||
| Depreciation and Amortization | $ 75,210 | 0.90% | $ 73,565 | 0.92% | |||||
| Dues & Subscriptions | $ 600 | 0.01% | $ 575 | 0.01% | |||||
| Insurance | $ 60,800 | 0.73% | $ 60,600 | 0.76% | |||||
| Licenses & Fees | $ 300 | 0.00% | $ 285 | 0.00% | |||||
| Marketing & Promotion | $ 52,632 | 0.63% | $ 51,025 | 0.64% | |||||
| Meals and Entertainment | $ 25,030 | 0.30% | $ 24,345 | 0.30% | |||||
| Office Expenses | $ 14,325 | 0.17% | $ 14,652 | 0.18% | |||||
| Office Supplies | $ 24,003 | 0.29% | $ 23,458 | 0.29% | |||||
| Salaries & Wages | $ 2,380,105 | 28.49% | $ 2,192,032 | 27.40% | |||||
| Professional Fees | $ 39,700 | 0.48% | $ 38,500 | 0.48% | |||||
| Property Taxes | $ 19,220 | 0.23% | $ 19,000 | 0.24% | |||||
| Rent | $ 85,230 | 1.02% | $ 84,360 | 1.05% | |||||
| Repairs & Maintenance | $ 1,450 | 0.02% | $ 1,500 | 0.02% | |||||
| Shipping Delivery | $ 770 | 0.01% | $ 730 | 0.01% | |||||
| Travel Expenses | $ 75,830 | 0.91% | $ 73,560 | 0.92% | |||||
| Utilities | $ 35,230 | 0.42% | $ 34,250 | 0.43% | |||||
| Leased Equipment | $ 44,000 | 0.53% | $ 43,750 | 0.55% | |||||
| Other | $ 15,320 | 0.18% | $ 14,756 | 0.18% | |||||
| Total Operating Expenses | $ 3,130,312 | 37.47% | $ 2,926,980 | 36.59% | |||||
| Operating Income | $ 1,477,607 | 17.69% | $ 1,450,320 | 18.13% | |||||
| Interest Expense | $ 84,658 | 1.01% | $ 83,950 | 1.05% | |||||
| Other Income (interest, royalties) | $ 5,920 | 0.07% | $ 5,725 | 0.07% | |||||
| Income Before Taxes | $ 1,398,869 | 16.75% | $ 1,372,095 | 17.15% | |||||
| Income Taxes | $ 489,604 | 5.86% | $ 480,233 | 6.00% | |||||
| Net Income | $ 909,265 | 10.88% | $ 891,862 | 11.15% |
