Anderson Company had the following income statement to be used in horizontal analysis:

 

Required:

Examine sales and compute the following. Indicate for each whether the change is an increase or a decrease:

1. Compute the change in dollar amount from 2018 to 2019.
2. 
   
3. Compute the percentage change from 2018 to 2019.

Transcribed Image Text:

Sales Cost of Goods Sold Gross Profit Operating Expenses Income Before Taxes Income Tax Expense Net Income 2019 $ 1,050,000 441,000 609,000 404,900 204,100 81,640 $ 122,460 1 2018 $1,000,000 400,000 600,000 420,000 180,000 72,000 $ 108,000 Sales Cost of Goods Sold Gross Profit Operating Expenses Income Before Taxes Income Tax Expense Net Income 2019 $ 1,050,000 441,000 609,000 404,900 204,100 81,640 $ 122,460 1 2018 $1,000,000 400,000 600,000 420,000 180,000 72,000 $ 108,000

Answer rating: 100% (QA)

To compute the change in dollar amount and the perce... View the full answer