The comparative income statements of Dancing Music Co. follow: 8 (Click the icon
ID: 2599189 • Letter: T
Question
The comparative income statements of Dancing Music Co. follow: 8 (Click the icon to view the comparative income statements.) Requirement 1. Prepare a horizontal analysis of the comparative income statements of Dancing Music Co. Round percentage changes to the nearest one-tenth percent. (Use a minus sign or parentheses for decreases. Round percentage changes to the nearest one-tenth percent, XX%.) O Data Table Dancing Music Co. Horizontal Analysis of Comparative Income Statements Years Ended December 31, 2016 and 2015 Dancing Music Co. Increase (Decrease) Comparative Income Statements 2016 2015 Amount Percentage Years Ended December 31, 2016 and 2015 Total revenue $ 1,075,000 s 016,000 2016 2015 Expenses: Total revenue $ 1,075,000 $ 915,000 Cost of goods sold 475,000 406,260 Expenses: Selling and general expenses 285,000 261,000 [ Cost of goods sold $ 475,000 $ 406, 250 Interest expense 22,500 12,500 Selling and general expenses 285,000 261,000 Income tax expense 104,500 82,150 Interest expense 22,500 12,500 Total expenses 887,000 761,900 104,500 Income tax expense 82,150 188,000 $ 153,100 Total expenses 887,000 Net income 761,900 Net income 188,000 $ 153,100 Print Done Enter any number in the edit fields and then click Check Answer.Explanation / Answer
2016 2015 Increase(decrease) Percentage Total revenue 1075000 915000 160000 17.5% Expenses: Cost of goods sold 475000 406250 68750 16.9% Selling and general expenses 285000 261000 24000 9.2% Interest expense 22500 12500 10000 80.0% Income tax expense 104500 82150 22350 27.2% Total expenses 887000 761900 125100 16.4% Net income 188000 153100 34900 22.8% 2 2016 2015 Total revenue 100.0% 100.0% Expenses: Cost of goods sold 47.9% 42.8% Selling and general expenses 27.7% 27.8% Interest expense 1.1% 1.3% Income tax expense 10.0% 9.2% Total expenses 86.6% 81.2% Net income 13.4% 18.8%