E13-16A Prepare a horizontal analysis of the comparative income statements of Ga

Question

E13-16A Prepare a horizontal analysis of the comparative income statements of Garza Music Co. Round percentage changes to the nearest one-tenth percent (three decimal places). 2014, 2013 Total Revenue (2014) 971,000 ; (2013) 868,000               Expenses: Cost of Goods Sold 437,000 ; 408,750              Selling and general expenses 287,000 ; 265,000               Interest Expense 23,500 ; 13,500        Income Tax Expense 105,500 ; 84,650        Total Expenses 853,000 ; 771,900       Net Income 118,000 ; 96,100       E13-19A Prepare a comparative common-size income statement for Garza Music Co., using the 2014 and 2013 data of E13-16A and rounding to four decimal places

Explanation / Answer

Solution:

Horizontal Comparative Analysis of Income Statement 2014 2013 Variance Variance in per cent Total Revenues 971,000 868,000 103,000 11.866% Expenses Cost of Goods Sold 437,000 408,750 -28,250 -6.911% Operating Income 534,000 459,250 74,750 16.277% Selling and general expenses 287,000 265,000 -22,000 -8.302% Interest Expense 23,500 13,500 -10,000 -74.074% Earnings before Tax 223,500 180,750 42,750 23.651% Income tax expense 105,500 84,650 -20,850 -24.631% Earnings after tax 118,000 96,100 21,900 22.789%

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.