For 2 0 1 6 , Clapton Company reported a decline in net income. At the end
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Question:
For Clapton Company reported a decline in net income. At the end of the year, S Hand, the president, is presented with the following condensed comparative income statement:
Comparative Income Statement for Years Ending December and
Year:
Sales: $
Cost of goods sold: $
Gross profit: $
Selling expenses: $
Administrative expenses: $
Total operating expenses: $
Income from operations: $
Other income: $
Income before Income tax: $
Income tax expenses: $
Net income: $
Year:
Sales: $
Cost of goods sold: $
Gross profit: $
Selling expenses: $
Administrative expenses: $
Total operating expenses: $
Income from operations: $
Other income: $
Income before Income tax: $
Income tax expenses: $
Net income: $
INSTRUCTIONS
Prepare a comparative income statement with horizontal analysis for the twoyear period, using as the base year. Round to one decimal place.
To the extent the data permits, comment on the significant relationships revealed by the horizontal analysis.
Related Book For
Financial and Managerial Accounting
ISBN: 978-1285866307
13th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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