Income statements for Munoz Company for 2018 and 2019 follow: MUNOZ COMPANY Income Statements 2019 2018 Sales $ 201,300 $ 181,300 Cost of goods sold 143,300 121,300 Selling expenses 21,000 19,000 Administrative expenses 12,900 14,900 Interest expense 3,100 5,100 Total expenses $ 180,300 $ 160,300 Income before taxes 21,000 21,000 Income taxes expense 5,500 3,100 Net income $ 15,500 $ 17,900 Required Perform a horizontal analysis, showing the percentage change in each income statement component between 2018 and 2019. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.
Income statements for Munoz Company for 2018 and 2019 follow: MUNOZ COMPANY Income Statements 2019 2018 Sales $ 201,300 $ 181,300 Cost of goods sold 143,300 121,300 Selling expenses 21,000 19,000 Administrative expenses 12,900 14,900 Interest expense 3,100 5,100 Total expenses $ 180,300 $ 160,300 Income before taxes 21,000 21,000 Income taxes expense 5,500 3,100 Net income $ 15,500 $ 17,900 Required Perform a horizontal analysis, showing the percentage change in each income statement component between 2018 and 2019. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 8E: Cost of Goods Sold, Income Statement. and Statement of Comprehensive Income Gaskin Company derives...
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Income statements for Munoz Company for 2018 and 2019 follow:
| MUNOZ COMPANY Income Statements |
|||||||
| 2019 | 2018 | ||||||
| Sales | $ | 201,300 | $ | 181,300 | |||
| Cost of goods sold | 143,300 | 121,300 | |||||
| Selling expenses | 21,000 | 19,000 | |||||
| Administrative expenses | 12,900 | 14,900 | |||||
| Interest expense | 3,100 | 5,100 | |||||
| Total expenses | $ | 180,300 | $ | 160,300 | |||
| Income before taxes | 21,000 | 21,000 | |||||
| Income taxes expense | 5,500 | 3,100 | |||||
| Net income | $ | 15,500 | $ | 17,900 | |||
Required
-
Perform a horizontal analysis, showing the percentage change in each income statement component between 2018 and 2019.
-
Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.
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