Chapter 14 - Homework E Print Item E Calculator eBook Show Me How Horizontal Analysis of the Income Statement Income statement data for Boone Company for two recent years ended December 31, are as follows: Previous Year Current Year Sales $435,200 $340,000 Cost of goods sold 378,000 300,000 Gross profit $57,200 $40,000 Selling expenses $16,520 $14,000 Administrative expenses 15,120 12,000 Total operating expenses $31,640 $26,000 Income before income tax $25,560 $14,000 Income tax expenses 10,200 5,600 $15,360 $8,400 Net income 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. Boone Company Comparative Income Statement For the Years Ended December 31 Increase (Decrease) Amount Increase (Decrease) Percent Current year Amount Previous year Amount Sales $435,200 $340,000 Cost of goods sold 378,000 300,000 % Next> Check My Work 5 more Check My Work uses remaining. Previous Submit Assignment for Grading Assignment Score: 0.0% Save and Exit Chapter 14 - Homework E Calculator E Print Item eBook Show Me How vet income $13,300 $8,400 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. Boone Company Comparative Income Statement For the Years Ended December 31 Increase (Decrease) Amount Increase (Decrease) Percent Current year Amount Previous year Amount Sales $435,200 $340,000 378,000 300,000 Cost of goods sold $40,000 $57,200 Gross profit Selling expenses 14,000 16,520 15,120 12,000 Administrative expenses $31,640 $26,000 Total operating expenses % Income before income tax $25,560 $14,000 10,200 5,600 Income tax expense $15,360 $8,400 Net income in sales of 28% and b. The net income for Boone Company increased by 82.9% between years. This increase was the combined result of an percentage in cost of goods sold. The cost of goods sold increased at a rate than the increase in sales, thus causing the percentage increase in gross profit to be than the percentage increase in sales. Next> Check My Work 5 more Check My Work uses remaining. Previous Submit Assignment for Grading Assignment Score: 0.0% Save and Exit