Income statements for Finch Company for Year 3 and Year 4 follow. FINCH COMPANY Income Statements...

 

Transcribed Image Text:

Income statements for Finch Company for Year 3 and Year 4 follow. FINCH COMPANY Income Statements Sales. Year 4 $200,700 Year 3 $180,700 Cost of goods sold 143,200 121,200 Selling expenses 20,000 18,000 Administrative expenses 12,000 14,000 Interest expense 3,100 5,100 Total expenses $178,300 $158,300 Income before taxes Income taxes expense Net income 22,400 6,100 $16,300 22,400 3,300 $19,100 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. Complete this question by entering your answers in the tabs below. Required A Required B Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. (Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).) FINCH COMPANY Horizontal Analysis of Income Statements Percentage Change over Year 3 44 40 Income statements for Finch Company for Year 3 and Year 4 follow. FINCH COMPANY Income Statements Sales. Year 4 $200,700 Year 3 $180,700 Cost of goods sold 143,200 121,200 Selling expenses 20,000 18,000 Administrative expenses 12,000 14,000 Interest expense 3,100 5,100 Total expenses $178,300 $158,300 Income before taxes Income taxes expense Net income 22,400 6,100 $16,300 22,400 3,300 $19,100 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. Complete this question by entering your answers in the tabs below. Required A Required B Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. (Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).) FINCH COMPANY Horizontal Analysis of Income Statements Percentage Change over Year 3 44 40

Answer rating: 100% (QA)

a Horizontal Analysis Percentage Change over Year 3 Sales 200700 180700 180700 100 111 Cost of goods ... View the full answer