Instructions Income statement data for Moreno Company for two recent years ended
ID: 2577999 • Letter: I
Question
Instructions Income statement data for Moreno Company for two recent years ended December 31, are as follows: Moreno Company Comparative Income Statement For the Years Ended December 31, 20-- Current Year Previous Year 1,938,000.00 $1,700,000.00 1,622,820.00 1462,000.00 315,180.00 $238,000.00 67,800.00$60,000.00 49,280.0044,000.00 $117,080.00 $104,000.00 198,100.00 $134,000.00 8,500.00 185,010.00 $125,500.00 2 Sales 3Cost of goods sold 4 Gross profit 5 Selling expenses 6 Administrative expenses Total operating expenses 8 Income before income tax 9 Income tax expense 10 Net income 13,090.00Explanation / Answer
Increase (decrease ) amount=amount in current year -amount in base year
Percentage change={increase (decrease) amount/amount in base year }×100
Horizontal analysis:
Increase
(decrease)
Increase
(Decrease)
$238,000
(1938,000-1,700,000)
14%
(238000/1700,000)
Increase
(decrease)
Increase
(Decrease)
Current year Previous year Amount percent Sales $1,938,000 $1,700,000$238,000
(1938,000-1,700,000)
14%
(238000/1700,000)
Cost of good sold $1,622,820 $1,462,000 $160,820 11% Gross profit $315,180 $238,000 $77,180 32.4% Selling expense $67,800 $60,000 $7,800 13% Administrative expense 49,280 44,000 $5,280 12% Total operating expenses $117,080 $104,000 $13,080 12.6% Income before income tax $198,100 $134,000 $64,100 47.8% Income tax expense $13,090 $8,500 $4,590 54% Net income $185,010 $125,500 $59,510 47.4%