l Analysis of the Income Statement Income statement data for Winthrop Company fo
ID: 2592666 • Letter: L
Question
l Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax Income tax expenses Net income Current Year $930,000 762,300 $167,700 $47,880 42,700 $90,580 $77,120 30,800 $46,320 Previous Year $750,000 630,000 $120,000 $42,000 35,000 $77,000 $43,000 17,200 $25,800 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place Winthrop Company For the Years Ended December 31 year year (Decrease) (Decrease) Amount Amount Amount Percent Previous NextExplanation / Answer
a. Comparative income statment
b. 1. increase
2. slower
3. increase
4. slower
5. greater
Current year Previous year Increase (decrease) Increase (decrease) percentage sales 930000 750000 180000 24% cost of goods sold 762300 630000 132300 21% Gross profit 167700 120000 47700 39.75% Selling expense 47880 42000 5880 14% Administrative expense 42700 35000 7700 22% Total operating expense 90580 77000 13580 17.64% Income before income tax 77120 43000 34120 79.35% Income tax expense 30800 17200 13600 79.07% Net income 46320 25800 20520 79.53%Related Questions
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