=+PR 17-1B Horizontal analysis for income statement obj. 1 810 Chapter 17 Financial Statement Analysis Egils Inc.

Comparative Income Statement For the Years Ended December 31, 2010 and 2009 2010 2009 Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $126,200 $100,000 Sales returns and allowances . . . . . . . . . . . . 2,426 2,000 ________ ________ Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . $123,774 $ 98,000 Cost of goods sold . . . . . . . . . . . . . . . . . . . . 58,800 50,000 ________ ________ Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . $ 64,974 $ 48,000 ________ ________ Selling expenses . . . . . . . . . . . . . . . . . . . . . $ 17,310 $ 15,000 Administrative expenses . . . . . . . . . . . . . . . . 13,464 12,000 ________ ________ Total operating expenses . . . . . . . . . . . . . . . $ 30,774 $ 27,000 ________ ________ Income from operations . . . . . . . . . . . . . . . . $ 34,200 $ 21,000 Other income . . . . . . . . . . . . . . . . . . . . . . . . 1,000 1,000 ________ ________ Income before income tax . . . . . . . . . . . . . . $ 35,200 $ 22,000 Income tax expense . . . . . . . . . . . . . . . . . . . 12,000 6,000 ________ ________ Net income . . . . . . . . . . . . . . . . . . . . . . . . . $ 23,200 $ 16,000 ________ ________ ________ ________ Instructions