From the comparative income statement of Miller Company in Figure 22.13 , do the following:

Comparative Income Statement for Miller Co.

1. Prepare a horizontal analysis with the amount of increase or decrease during 2020 along with the percent increase or decrease during 2019 (to the nearest tenth of a percent).

2. Vertically analyze the 2020 column of the income statement (to the nearest tenth of a percent).

3. Prepare a common-size comparative income statement (to the nearest tenth of a percent) for 2019 and 2020.

Transcribed Image Text:

MILLER COMPANY COMPARATIVE INCOME STATEMENT FOR YEARS ENDED DECEMBER 31, 2020, AND DECEMBER 31, 2019 December 31 2020 2019 Net Sales $ 260 0 0 000 $ 306 0 0000 Cost of Goods Sold 185 0 0 000 150 0 0000 Gross Profit from Sales 75|000100| 156 |0 이000 Operating Expenses: 20 00000 78 0 0000 33 00000 Selling General and Administrative 2400 000 Total Operating Expenses Operating Income 44 00000 11100000 31 00000 45 0 0000 Less Interest Expense 600000 1200000 Income Before Taxes 25 00000 33 00000 13 20000 Income Taxes 10 00000 Net Income $ 15 00000 $ 19 8 0000