The firm’s comparative income statement and balance sheet for the years 2022 and 2021 follow:

INSTRUCTIONS

1. Prepare both a horizontal and a vertical analysis of the statements. Carry all calculations to two decimal places, and then round to one decimal place.

2. Make written comments about any of the results that seem worthy of investigation.

Analyze: Based on your analysis, which expense category experienced the greatest percentage change?

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Meeting Pointe, Inc. Comparative Income Statement For Years Ended December 31, 2022 and 2021 Revenue Sales Less Sales Returns and Allowances Net Sales Cost of Goods Sold Merchandise Inventory, January 1 Net Purchases Total Merchandise Available for Sale Less Merchandise Inventory, December 31 Cost of Goods Sold Gross Profit on Sales Operating Expenses Selling Expenses Sales Salaries Expenses Payroll Tax Expense-Selling Other Selling Expenses Total Selling Expenses General and Administrative Expenses Officers' Salaries Expense Payroll Tax Expense-Administrative Depreciation Expense Other General and Administrative Expenses Total General and Administrative Expenses Total Operating Expenses Net Income before Income Taxes Income Tax Expense Net Income after Income Taxes 2022 Amounts 2021 679000 605000 3500 2500 675500 602500 140000 14000 7500 161500 26000 19000 149800 150000 168800 176000 29500 19000 139300 157000 536200 445500 ▬▬▬▬▬ 100000 10000 5500 115500 75000 4500 85000 8500 5000 1500 100000 261500 201000 5000 1000 85000 274700 244500 57687 51345 217013 193155 ++