Income statements for Gaidar Company for 2014 and 2015 are as follows GAIDAR COM
ID: 2588252 • Letter: I
Question
Income statements for Gaidar Company for 2014 and 2015 are as follows GAIDAR COMPANY Income Statements 2015 2014 Sales $200,500 $180,500 Cost of goods sold Selling expenses Administrative expenses Interest expense 142,600 120,600 19,400 15,000 5,500 21,400 13,000 3,500 Total expenses $180,500 $160,500 Income before taxes Income taxes expense 20,000 5,100 20,000 3,900 Net income $14,900 16,100 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between 2014 and 2015. (Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (i.e., .234 should be entered as 23.4).) GAIDAR COMPANY Horizontal Analysis of Comparative Income Statements Percentage Change over 2014 Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (loss)Explanation / Answer
Solution:-
a.
b.
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GAIDAR COMPANY Horizontal analysis of comparative income statements Percentage change over 2014 Sales 11.1 % Cost of goods sold 18.2 % Selling expenses 10.3 % Administrative expenses (13.3) % Interest expense (36.4) % Total expense 12.5 % Income before tax 0 % Income taxes expense 30.8 % Net income (loss) (7.5) %