During 2013, Ortiz€™s Jewelry Store, Inc., began a sales promotion campaign that cost $ 9,672 more than it usually spent on advertising. Following is a condensed partial comparative income statement for the fiscal years ended December 31, 2013, and December 31, 2012.

Required
1. Using horizontal analysis, prepare a comparative income statement for the two-year period. Round percentages to three decimal places.
2. Comment on the percentages of increase ordecrease.

Transcribed Image Text:

Ortiz's Jowelry Store, Inc. Comparative Income Statement For Years Ended December 31. 2013 and December 31, 2012 2013 2012 Revenue from Sales: Sales $376,760 $276,000 20,000 $330,760 $256,000 205,140 156.000 $125,620 $100,000 Less Sales Returns and Allowances 46,000 Net Salas Cost of Goods Sold Gross Profit Operating Expenses $ 66,925 55,300 14.310 $ 86,02969,610 39,39130,390 305 $ 39,194 30,085 6,000 $ 32.194-24.085 Selling Expenses General Expenses 19,104 Total Operating Expenses Income from Operations Other Expenses Income Before Income Taxes Income Tax Expense Net income 397 7000