The comparative condensed income statements of Hendi Corporation are shown below
ID: 2371405 • Letter: T
Question
The comparative condensed income statements of Hendi Corporation are shown below.HENDI CORPORATION
Comparative Condensed Income Statements
For the Years Ended December 31
2009 2008
Net sales $600,000 $500,000
Cost of goods sold
483,000
420,000
Gross profit 117,000 80,000
Operating expenses
57,200
44,000
Net income
$ 59,800
$ 36,000
Prepare a horizontal analysis of the income statement data for Hendi Corporation using 2008 as a base. (Show the amounts of increase or decrease.) (Round percentages to 1 decimal place, e.g. 10.5.)
HENDI CORPORATION
Condensed Income Statements
For the Years Ended December 31
Increase or (Decrease)
2009
2008
Amount
Percentage
Net sales $ $ $ %
Cost of goods sold
%
Gross profit %
Operating expenses
%
Net income
$
$
$
%
Prepare a vertical analysis of the income statement data for Hendi Corporation in columnar form for both years. (Round percentages to 1 decimal place, e.g. 10.5.)
HENDI CORPORATION
Condensed Income Statements
For the Years Ended December 31
2009
2008
Amount
Percentage
Amount
Percentage
Net sales $ % $ %
Cost of goods sold
%
%
Gross profit % %
Operating expenses
%
%
Net income
$
%
$
%
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Explanation / Answer
Prepare a horizontal analysis of the income statement data for Hendi Corporation using 2008 as a base. (Show the amounts of increase or decrease.) (Round percentages to 1 decimal place, e.g. 10.5.)
HENDI CORPORATION
Condensed Income Statements
For the Years Ended December 31
Increase
2009 2008 (Decrease) % Change
Net Sales $600,000 $500,000 $100,000 20.0%
COGS $483,000 $420,000 $63,000 15.0%
Gross Profit $117,000 $80,000 $37,000 46.2%
Operaing exp. $57,200 $44,000 $13,200 30.0%
Net Income $59,800 $36,000 $23,800 66.1%
Prepare a vertical analysis of the income statement data for Hendi Corporation in columnar form for both years. (Round percentages to 1 decimal place, e.g. 10.5.)
____________________________________
2009 2008
____________________________________
Amount Percent Amount Percent
Net Sales $600,000 100.0% $500,000 100.0%
COGS $483,000 80.5% $420,000 84.0%
Gross Profit $117,000 19.5% $80,000 16.0%
Operaing exp. $57,200 9.5% $44,000 8.8%
Net Income $59,800 10.0% $36,000 7.2%