The comparative condensed income statements of Emley Corporation are shown below.

Instructions

(a) Prepare a horizontal analysis of the income statement data for Emley Corporation using 2016 as a base. (Show the amounts of increase or decrease.)

(b) Prepare a vertical analysis of the income statement data for Emley Corporation in columnar form for both years.

Transcribed Image Text:

EMLEY CORPORATION Comparative Condensed Income Statements For the Years Ended December 31 2017 2016 Net sales $660,000 483,000 $600,000 Cost of goods sold Gross profit Operating expenses 420,000 177,000 125,000 180,000 120,000 Net income $ 52,000 $ 60,000