The income statements for Anything Tennis for the years ending December 31, 2021 and 2020, are provided below.

Required:

1. Complete the “Amount” and “%” columns to be used in a horizontal analysis of the income statements for Anything Tennis.

2. Discuss the major fluctuations in income statement items during the year.

Transcribed Image Text:

ANYTHING TENNIS Income Statements For the years ended December 31 Increase (Decrease) 2021 2020 Amount % $3,500,000 2,150,000 1,350,000 $2,620,000 1,380,000 1,240,000 Net sales Cost of goods sold Gross profit Operating expenses Operating income Other income (expense) 810,000 630,000 540,000 610,000 6,000 10,000 550,000 Income before tax 616,000 Income tax expense 100,000 140,000 $ 476,000 Net income $ 450,000