Income tax expense Net income (17,800) (10,000) $26,700 $15,000 a. Prepare a comparative income statement with...

 

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Income tax expense Net income (17,800) (10,000) $26,700 $15,000 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. I required, round your answers to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31. Current Previous Increase Increase Line Item Description Sales Year Amount Cost of goods sold Year Amount $2,240,000 $2,000,000 (1,925,000) (1,750,000) (Decrease) (Decrease) Amount Percent % % Gross profit $315,000 $250,000 % Selling expenses $(152,500) $(125,000) % Administrative expenses (118,000) (100,000) % Total operating expenses $(270,500) $(225,000) $ % Income before income tax expense $44,500 $25,000 % Income tax expense (17,800) (10,000) % Net income $26,700 $15,000 % b. The net income for Winthrop Company increased between years. This increase was the combined result of an in cost of goods sold. The cost of goods sold increased at a percentage sales, thus causing the percentage increase in gross profit to be than the percentage increase in sales. in sales and a rate than the increase in Income tax expense Net income (17,800) (10,000) $26,700 $15,000 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. I required, round your answers to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31. Current Previous Increase Increase Line Item Description Sales Year Amount Cost of goods sold Year Amount $2,240,000 $2,000,000 (1,925,000) (1,750,000) (Decrease) (Decrease) Amount Percent % % Gross profit $315,000 $250,000 % Selling expenses $(152,500) $(125,000) % Administrative expenses (118,000) (100,000) % Total operating expenses $(270,500) $(225,000) $ % Income before income tax expense $44,500 $25,000 % Income tax expense (17,800) (10,000) % Net income $26,700 $15,000 % b. The net income for Winthrop Company increased between years. This increase was the combined result of an in cost of goods sold. The cost of goods sold increased at a percentage sales, thus causing the percentage increase in gross profit to be than the percentage increase in sales. in sales and a rate than the increase in