Prepare a financial analysis statement showing both increase or decrease in the amounts that has taken place
Question:
Prepare a financial analysis statement showing both increase or decrease in the amounts that has taken place as well as converting the changes to percentage using information in the table below.
Quality department store income statement for 2019 and 2020
2020 | 2019 | |
K | K | |
Sales revenue | 2,195,000 | 1,960,000 |
Sales returns | 98,000 | 123,000 |
Net sales | 2,097,000 | 1,837,000 |
Cost of goods sold | 1,281,000 | 1,140,000 |
Gross profit | 816,000 | 697,000 |
Selling expenses | 235,000 | 211,500 |
Administrative expenses | 104,000 | 108,500 |
Total operating expenses | 357,000 | 320,000 |
Income from operating expenses | 495,000 | 377,000 |
Other income and expenses | ||
Interest and dividends | 9,000 | 11,000 |
Interest expense | 36,000 | 40,500 |
Income before income tax | 432,000 | 347,500 |
Income tax expense | 168,200 | 139,000 |
Net Income | 263,000 | 208,500 |
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds