For 20Y2, McDade Company reported a decline in net income. At the end of the year, T. Burrows, the president, is president, is presented with the following condensed comparative income statement:

Requirement:

1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Use the minus sign to indicate a decrease in the ??Difference?? columns. If required, round to one decimal place.

Transcribed Image Text:

Sales Cost of goods sold Gross profit Selling expenses McDade Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 2012 Administrative expenses Total operating expenses Income from operations Other income Income before income tax Income tax expense Net income $704,699 507,000 $197,699 $71,500 41,910 $113,410 $84,289 3,372 $87,661 24,500 $63,161 20Y1 $617,000 390,000 $227,000 $52,000 33,000 $85,000 $142,000 2,600 $144,600 43,400 $101,200 Sales Cost of goods sold Gross profit Selling expenses McDade Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 2012 Administrative expenses Total operating expenses Income from operations Other income Income before income tax Income tax expense Net income $704,699 507,000 $197,699 $71,500 41,910 $113,410 $84,289 3,372 $87,661 24,500 $63,161 20Y1 $617,000 390,000 $227,000 $52,000 33,000 $85,000 $142,000 2,600 $144,600 43,400 $101,200

Answer rating: 100% (QA)

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