Perform the Horizontal Analysis for the income statement given below:

List out the differences between balance sheet and income statement in table format.

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2008 ($) 2007 ($) Sales 1,498,000 1,043,000 1,200,000 820,000 Cost of goods sold Gross profit 455,000 380,000 Selling expenses General expenses 191,000 104,000 147,000 97,400 Total operating expenses 295,000 244,400 Operating income 160,000 8,500 135,600 11,000 Other income 168,500 6,000 146,600 12,000 Other expenses Income before income tax 162,500 71,500 134,600 58,100 Income tax Net income 91,000 76,500 2008 ($) 2007 ($) Sales 1,498,000 1,043,000 1,200,000 820,000 Cost of goods sold Gross profit 455,000 380,000 Selling expenses General expenses 191,000 104,000 147,000 97,400 Total operating expenses 295,000 244,400 Operating income 160,000 8,500 135,600 11,000 Other income 168,500 6,000 146,600 12,000 Other expenses Income before income tax 162,500 71,500 134,600 58,100 Income tax Net income 91,000 76,500

Answer rating: 100% (QA)

1 Below are the calculations for the income statement 2008 Expenses as ge of sales 2007 Expenses as ge of sales Sales 1498000 1200000 Cost of goods so... View the full answer