=+EX 17-6 Current position analysis obj. 2

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a. 2010 working capital, $1,000,000 Income statement data for Grendel Images Company for the years ended December 31, 2010 and 2009, are as follows:

2010 2009 Sales $196,000 $160,000 Cost of goods sold 170,100 140,000 ________ ________ Gross profit $ 25,900 $ 20,000 ________ ________ Selling expenses $ 12,200 $ 10,000 Administrative expenses 9,750 8,000 ________ ________ Total operating expenses $ 21,950 $ 18,000 ________ ________ Income before income tax $ 3,950 $ 2,000 Income tax expenses 2,000 1,000 ________ ________ Net income $ 1,950 $ 1,000 ________ ________ ________ ________

a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for 2010 when compared with 2009. Round to one decimal place.