E13-16A Prepare a horizontal analysis of the comparative income statements of Ga
ID: 2497823 • Letter: E
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).
Left column is 2014. Right column is 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
E13-16A
E13-19A
Note :
In Comparative Income Statement Difference is calculated between Year 2014 & Year 2013 and percentage is of Difference in amount divided by the base year amount i.e 2013
In Common Size Income stament , Percentage is calculated on the base of thier year sales only.where common is the sales amount
Comparative Income Statement 2014 2013 Difference Change in Percentage Total Revenue 971000 868000 103000 11.9% Expenses: Cost of Goods Sold 437000 408750 28250 6.9% Selling and general expenses 287000 265000 22000 8.3% Interest Expense 23500 13500 10000 74.1% Income Tax Expense 105500 84650 20850 24.6% Total Expenses 853000 771900 81100 10.5% Net Income 118000 96100 21900 22.8%Related Questions
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