Review Dict akulat Accounting Rogers Company had the following income statement

ID: 2592023 • Letter: R

Question

Review Dict akulat Accounting Rogers Company had the following income statement to be used in horizontal analysis 2016 2015 Sales Cost of Goods Sold Gross Profit Operating Expenses Income Before Taxes Income Tax Expense Net Income $850,000 1,000,000 400,000 600,000 360,000 240,000 72,000 S163,800 $ 168,000 306,000 544,000 310,000 234,000 70,200 Required Examine sales and compute the following. Indicate for each whether the change is an increase or a decrease 1. Compute the change in dollar amount from 2015 to 2016 2. Compute the percentage change from 2015 to 2016 Round your answer to two decimal places Increase or Decrease Annount of Change cent of Change Increase O Decrease |$U 0% Clear Undo Help ps/ Type here to search

Explanation / Answer

Rogers Company

2015

2016

Change –Decrease

sales

$1,000,000

$850,000

$150,000

percent of change

15%

The sales posted a decrease of $150,000 from the year 2015 to the year 2016 as shown below,

$850,000 - $1,000,000 = ($150,000)

The decrease in sales from 2015 to 2016 is 15% as shown below,

($150,000/$1,000,000) x 100 = 15%