Data for McCormick Designs, Inc. follow: Income Statement 2016 2015 Net Sales Revenue $431,250 $373.000 Expenses: Cost
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Question:
Data for McCormick Designs, Inc. follow:
Income Statement
| 2016 | 2015 |
Net Sales Revenue | $431,250 | $373.000 |
Expenses: | | |
Cost of Goods Sold | 202,000 | 189,000 |
Selling and Administrative Expenses | 100,050 | 92,550 |
Other Expenses | 8,000 | 2,150 |
Total Expenses | 310,050 | 283,700 |
Net Income | $121,200 | $89,300 |
Requirements:
1. Prepare a horizontal analysis of the comparative income statement of McCormick Designs, Inc. Round percentage changes to one decimal place.
2. Why did 2016 net income increase by a higher percentage than net sales revenue?
*hint: 1. Net income 35.7%
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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