The income statements for Federer Sports Apparel for 2019 and 2018 are presented

Question

The income statements for Federer Sports Apparel for 2019 and 2018 are presented below Required Prepare a horizontal analysis for 2019 using 2018 as the base year. (Decreases should be indicated with a minus sign. Round your percentage answers to 1 decimal place.) FEDERER SPORTS APPAR Income Statement For the Years Ended December 31 Increase Decrease Year 2019 2018 Amount % Net sales 18,800,000 15,500,000 goods13,200,000 7,000,000 Gross prof 5,600,000 8,500,000 1,600,0001,200,000 1,000,0001,000,000 0 Loss (litigation 1,500,000300,000 Cost of sold Operating expenses Depreciation expense Inventory 200,000 down Incnme Hints References eBook & Resources Hint #1 Check my work

Explanation / Answer

Horizontal analysis :

2019 2018 Amount % Net Sales 18800000 15500000 3300000 21.3% Cost of goods sold 13200000 7000000 6200000 88.6% Gross profit 5600000 8500000 -2900000 -34.1% Operating expense 1600000 1200000 400000 33.3% Depreciation expense 1000000 1000000 0 0% Inventory write down 200000 0 200000 100% Loss (litigation) 1500000 300000 1200000 4% Income 1300000 6000000 -4700000 -78.3%

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