Data for McatearDesigns, Inc follow EEECEck the icon to view the data.) Read the
ID: 2394052 • Letter: D
Question
Data for McatearDesigns, Inc follow EEECEck the icon to view the data.) Read the tequirements. Requirement Prepare a horizontal analysis o the com a alive income stateme tol Muscateer Desi ns nc Round percenta e changes o one decimal place. Round he percentages 0 on decima ace XX%. Use a minus s an or parentheses to d ate a decreas Muscateer Designs, Inc Comparative Incoe Statement Years Ended December 31, 2018 and 2017 Increase (Decrease) Data Table 2018 2017 Net Sales Revenue 431,500 S 373.450 Expenses Muscateer Designs, Inc. Comparative Income Statement Years Ended December 31, 2018 and 2017 Cost of Goods Sold Selling and Administrative Expenses Other Expenses Total Expenses 189 000 91.050 5,750 285 000 S 81,6U 203,000 100,050 9,150 312,200 5 119,300 2018 2017 Net Sales Revenue S 431,500 S 373,450 Expenses: Net Income Requirement 2. Why did 2018 nat income incraase by a higher parcentage than net sales revanue? Net income incressed by a higher percentage than total net sales revenue during 2018 because Cost of Gonds Sold Seling and Administrative Expenses Other Expenses Tolal Expenses 203,000 189000 91,050 5,750 312,200 285 800 5 119,300 S 81,650 100,050 Net Income Print DoneExplanation / Answer
the follwing is the comparative income statement:
requirement 2:
net income increased by a higher percentage than total net sales revenue during 2018 because :
Revenue Growth rate was higher than expense growth rate.
2018 2017 amount percentage net sales revenue 431,500 373,450 58,050 (58,050/373,450)*100=>15.5% expenses: cost of goods sold 203,000 189,000 14,000 (14,000/189,000)*100=>7.4% selling and administrative expenses 100,050 91,050 10,000 (10,000/91,050)*100=>11.0% other expenses 9,150 5,750 3,400 (3,400/5,750)*100=>0.6% total expenses 312,200 285,800 26,400 (26,400/285,800)=>9.2% net income 119,300 87,650 31,650 (31,650/87,650)=>36.10%Related Questions
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