Income statement data for Scribe Paper Company for the year ended December 31, 2007 and 2006, are

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Income statement data for Scribe Paper Company for the year ended December 31, 2007 and 2006, are as follows:

a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for 2007 when compared with 2006. Round to two decimal places.
b. What conclusions can be drawn from the horizontalanalysis?

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Financial Accounting An Integrated Statements Approach

ISBN: 978-0324312119

2nd Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

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Question Posted: May 29, 2012 05:45 AM

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Income statement data for Scribe Paper Company for the year ended December 31, 2007 and 2006, are

Question:

2007 $66,300 32,000 34,300 $24,000 7,500 31,500 2,800 1,000 1,800 2006 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax Income tax expense Net income $85,000 40,000 $45,000 $25,000 6,000 531,000 $14,000 6,000 8,000

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a SCRIBE PAPER COMPANY Comparative Income Statement For the Years Ended December 31 2007 and 2006 20...View the full answer

Financial Accounting An Integrated Statements Approach

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