Prepare a horizontal analysis of the following comparative income statement of The Charmed Group. (Click the...
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Prepare a horizontal analysis of the following comparative income statement of The Charmed Group. (Click the icon to view the comparative income statement.) Why did net income increase by a higher percentage than net sales revenue during 2017? Show Charmed's horizontal analysis of net sales and expenses. (Round the percentages to the nearest hundredth percent.) The Charmed Group Horizontal Analysis of Comparative Income Statements Years Ended December 31, 2017 and 2016 (amounts in thousands) Sales revenues Less: Cost of goods sold Gross profit Less: Operating expenses Operating income Less: Interest expense Income before income taxes Less: Income tax expense Net income. $ $ $ $ 2017 507,990 S 234,900 273,090 S 127,080 146,010 $ 14,300 131,710 S 20,150 $ 111,560 S 2016 442,500 217,500 225,000 120,000 105,000 13,000 92,000 12,000 80,000 Increase / (Decrease) Amount Percent % % % % % % % Data table The Charmed Group Income Statement For the Years Ended December 31, 2017 and 2016 Sales revenues Less: Cost of goods sold Gross profit Less: Operating expenses Operating income Less: Interest expense Income before income taxes Less: Income tax expense Net income (amounts in thousands) 2017 2016 $ $ $ 507,990 $ 234,900 273,090 $ 127,080 146,010 $ 14,300 $ 131,710 $ 20,150 $ 111,560 S 442,500 217,500 225,000 120,000 105,000 13,000 92,000 12,000 80,000 Prepare a horizontal analysis of the following comparative income statement of The Charmed Group. (Click the icon to view the comparative income statement.) Why did net income increase by a higher percentage than net sales revenue during 2017? Show Charmed's horizontal analysis of net sales and expenses. (Round the percentages to the nearest hundredth percent.) The Charmed Group Horizontal Analysis of Comparative Income Statements Years Ended December 31, 2017 and 2016 (amounts in thousands) Sales revenues Less: Cost of goods sold Gross profit Less: Operating expenses Operating income Less: Interest expense Income before income taxes Less: Income tax expense Net income. $ $ $ $ 2017 507,990 S 234,900 273,090 S 127,080 146,010 $ 14,300 131,710 S 20,150 $ 111,560 S 2016 442,500 217,500 225,000 120,000 105,000 13,000 92,000 12,000 80,000 Increase / (Decrease) Amount Percent % % % % % % % Data table The Charmed Group Income Statement For the Years Ended December 31, 2017 and 2016 Sales revenues Less: Cost of goods sold Gross profit Less: Operating expenses Operating income Less: Interest expense Income before income taxes Less: Income tax expense Net income (amounts in thousands) 2017 2016 $ $ $ 507,990 $ 234,900 273,090 $ 127,080 146,010 $ 14,300 $ 131,710 $ 20,150 $ 111,560 S 442,500 217,500 225,000 120,000 105,000 13,000 92,000 12,000 80,000
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Item 2017 Amount 2016 Amount IncreaseDecrease Percent Change Sales Revenue 507990 442500 65490 1480 Cost of Goods Sold 234900 217500 17400 800 Gross P... View the full answer
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