HORIZONTAL ANALYSIS OF COMPARATIVE FINANCIAL STATEMENTS Amounts from the comparative income statement and balance sheet of Johnson
Question:
HORIZONTAL ANALYSIS OF COMPARATIVE FINANCIAL STATEMENTS Amounts from the comparative income statement and balance sheet of Johnson Stores, Inc., for the last two years are as follows:
REQUIRED
Prepare a horizontal analysis of the statements. Add columns to show the amount of increase (decrease) and the percentage change. Round percentages to one decimalplace.
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Johnson Stores, Inc. Comparative Income Statement For Years Ended December 31, 20-2 and 20-1 20-1 $305,145 20-2 $467,865 Net sales (on account) Cost of goods sold Gross profit Administrative expenses Selling expenses Total operating expenses Operating income Interest expense Income before income taxes 256,955 $210,910 $ 43,876 44,994 $ 8,870 $122,040 149,005 $156,140 $ 30,617 31,293 $ 61,910 $ 94,230 916 $121,124 30,280 $ 90,844 903 $ 93,327 19,980 $ 73,347 Income tax expense Net income Johnson Stores, Inc. Comparative Balance Sheet December 31, 20-2 and 20-1 20-2 20-1 Assets Current assets: $ 30,275 42,441 49,460 7,119 $129,295 $ 15,604 33,565 34,636 6,403 $ 90,208 Cash Receivables (net) Merchandise inventory Supplies and prepayments Total current assets Property, plant, and equipment: Office equipment (net) Factory equipment (net) Total property, plant, and equipment Total assets $ 9,025 72,090 $ 81,115 $210,410 $ 6,062 52,930 $ 58,992 $149,200 Liabilities Current liabilities: $ 4,000 30,233 6,250 $ 40,483 $ 8,000 14,821 7,600 $ 30,421 Notes payable Accounts payable Accrued and withheld payroll taxes Total current liabilities Stockholders' Equity Common stock ($10 par) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 75,000 94,927 $169,927 $210,410 $ 63,000 55,779 $118,779 $149,200
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