e http://ezto hm.tpx 4. The income statements for Urban Outits, Inc. are present

Question

e http://ezto hm.tpx 4. The income statements for Urban Outits, Inc. are presented below Urban Outfits, Inc Income Statements Year Ended December 31 Sales revenue Cost of goods sold Gross profit Operating and other expenses Interest expense Income tax expense Current Prior Year Year $804,983 $875,059 412,615 443,072 392,368 431,987 142,724 156,881 26,400 8,800 55,500 58,000 Net income $167,744 $208,306 Prepare a horizontal analysis of the income statement above. (Round your answers to the nearest whole percent.) URBAN OUTFITS, INC Income Statements Year Ended December 31 Increase (Decrease) Amount Current Prior Year Percent(%) Sales Revenue Cost of Goods Sold Gross Profit $ 804.983 $875,059 412,615443,072 392,368 431,987 Operating and Other Expenses 142,724 156,881 8,800 55,50058,000 67,744 208,306 Interest Expense Income Tax Expense Net Income 26.400

Explanation / Answer

   Income statement

  

   Increase (Decrease)    Amount Percent (%) Sales revenue (70076) 70076 / 875059 = (8%) cost of goods sold (30457) 30457 / 443072 = (7%) Gross profit (39619) 39619 / 431987 = (9%) Operating and other expenses (14157) 14157 / 156881 = (9%) Interest expense 17600 17600/8800 = 200% Income tax expense (2500) 2500/58000 = (4%) Net Income (40562) 40562 / 208306 = (19%)

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