Income statement data for Boone Company for the years ended December 31, 2012 and 2011, are as follows:

a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for 2012 when compared with 2011. Round to one decimal place.b. What conclusions can be drawn from the horizontalanalysis?

Transcribed Image Text:

2012 2011 Sales $446,400 $360,000 Cost of goods sald Gross profit Selling expenses Administrative expenses 387,450 315,000 $ 58,950 $ 27,900 21,960 $ 49,860 $ 9,090 5,400 $ 3,690 $ 45,000 $ 22,500 18,000 Total operating expenses $ 40,500 $ 4,500 Income before income tax Income tax expenses 2,700 $ 1,800 Net income