Comparative Income Statements Using Excel

For this assignment, you will use your accounting knowledge and spreadsheet skills to

prepare comparative multi$-$step income statements, including common size information.

This comprehenslve problem is not a group assignment, and you are to complote

It without sharing your work with others inside or outside the course.

Probleminformation:

The owners of Cyclepath Bicycle Store have asked you to prepare comparative income

statements for the fiscal years ended March $31,2016$ and $2017.$ To aid in their analysis,

the owners would also like you to provide common site information with the comparative

statements $($vertical analysis$).$ They have provided an alphabetical list of account names

and balances for the store on the seoond page. Al accounts have normal balances.

Guidelines:

Use Excel to prepare a professional work product for the owners. Fit the financial

information on one worksheet in print$-$ready form.

Refer to the format on the thind page to prepare Cyclepath's income statements.

Notice that it uses the multi$-$step format and also includes columns for common

size information. Use the numbers provided as check figures.

Refer to chapter $4$ of the Edmonds lextbook if you are not sure what should be

classified as Nonoperating Hems.

List expense accounts separately and show expenses as negative numbers.

Provide common size information for all statement line items, not just subtotals and

totals.

Format numbers as follows:

Use commas

Use brackets $()$ for negative numbers

Use whole numbers $($zero places behind the decimal point$)$

Right align; do not center

Use dollar signs $($$$)$ where appropriate on the financial statements

Use two decimal places $($e$.$g$.,50\mathrm{.}46$ and $8\mathrm{.}42)$ for the common size

information

Pay attention to the placement of underlines, both single and double, and

centering of column headings

Make use of Excel formulas wherever possible.