Use the financial statements for Photography Professionals to complete one horizontal analysis based on income statement balances
Question:
Use the financial statements for Photography Professionals to complete one horizontal analysis based on income statement balances and another based on balance sheet balances. (Hint: Use amounts from two statements to create each horizontal analysis.) Notes: All calculations throughout this exercise should be rounded to two decimal places. Photography Professionals Income Statement For the Year Ended December 31, 2026 Revenues: Service Revenue $ 108,500 Expenses: Salaries Expense $ 61,500 Photo Supplies Expense 14,750 Advertising Expense 11,350 Telephone Expense 1,740 Depreciation Expense 1,400 Postage Expense 925 Office Supplies Expense 625 Miscellaneous Expense 370 Total Expenses 92,660 Net Income $ 15,840 Photography Professionals Balance Sheet December 31, 2026 Assets: Cash $ 8,450 Accounts Receivable 13,500 Photo Supplies 3,150 Office Supplies 170 Photo Equipment $ 6,950 Accum. Dep. - Photo Equip. 5,270 1,680 Truck 21,500 Accum. Dep. - Truck 11,000 10,500 Total Assets: $ 37,450 Accounts Payable 12,350 Salaries Payable 1,350 Owner's Equity: Lucia Manning, Capital 23,750 Total Liabilities
Fundamental Managerial Accounting Concepts
ISBN: 978-1259569197
8th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds