Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the...

 

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Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Use the minus sign to indicate a decrease in the "Increase/(Decrease)" columns. If required, round percentages to one decimal place. Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Increase/ (Decrease) Amount Increase/ (Decrease) Percent Line Item Description 20Y2 Sales 20Y1 $523,775 $475,000 $48,775 10.2 X % Cost of goods sold (366,000) (300,000) 66,000 22.0 % Gross profit $157,775 $175,000 -17,225 X 19.0 X % Selling expenses $(51,000) $(40,000) 11,000 V 27.5 % Administrative expenses (29,950) (25,000) 4,950 19.8 % Total operating expenses $(80,950) $(65,000) 15,950 24.5 % Operating income Other revenue $76,825 2,498 $110,000 $ -33,175 2,000 30.1 X % 498 24.9 % Income before income tax expense Income tax expense $79,323 (22,200) (33,600) $112,000 $ -32,677 -11,400 29.1 X% 33.9 X % Net income $57,123 $78,400 -21,277 27.1 X% Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Use the minus sign to indicate a decrease in the "Increase/(Decrease)" columns. If required, round percentages to one decimal place. Macklin Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Increase/ (Decrease) Amount Increase/ (Decrease) Percent Line Item Description 20Y2 Sales 20Y1 $523,775 $475,000 $48,775 10.2 X % Cost of goods sold (366,000) (300,000) 66,000 22.0 % Gross profit $157,775 $175,000 -17,225 X 19.0 X % Selling expenses $(51,000) $(40,000) 11,000 V 27.5 % Administrative expenses (29,950) (25,000) 4,950 19.8 % Total operating expenses $(80,950) $(65,000) 15,950 24.5 % Operating income Other revenue $76,825 2,498 $110,000 $ -33,175 2,000 30.1 X % 498 24.9 % Income before income tax expense Income tax expense $79,323 (22,200) (33,600) $112,000 $ -32,677 -11,400 29.1 X% 33.9 X % Net income $57,123 $78,400 -21,277 27.1 X%

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