Ch 17.3 Exercises and Problems ebook Show Me How Calator Printer Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Current Year Previous Year Sales $957,600 $760,000 Cost of goods sold 799,500 650,000 Gross profit $158,100 $110,000 Selling expenses $46,400 $40,000 Administrative expenses 40,920 33,000 Total operating expenses $87,320 $73,000 Income before income tax $70,780 $37,000 Income tax expenses 28,300 14,800 Net income $42,480 $22,200 a. Prepare a comparative Income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. ChT Exercises and Problems eBook Show Me How Calculator Printem a. Prepare a comparative Income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent Sales $957,600 $760,000 % Cost of goods sold 799,500 650,000 % Gross profit $158,100 $110,000 Selling expenses $46,400 $40,000 Administrative expenses 40,920 33,000 % Total operating expenses $87,320 $73,000 Income before income tax $70,780 $37,000 % 28,300 Income tax expense % 14,800 $42,480 Net income % $22,200 in sales and rate than the increase in b. The net income for Winthrop Company increased between years. This increase was the combined result of an percentage in cost of goods sold. The cost of goods sold increased at a sales, thus causing the percentage increase in gross profit to be than the percentage increase in sales. Previous Next Check My Work 2 more Check My Work uses remaining MacBook Air