Prepare a horizontal analysis of the comparative income statements of McCormick Music Co. Round percentage changes to the nearest one-tenth percent.

Transcribed Image Text:

McCormick Music Co. Comparative Income Statements Years Ended December 31, 2021 and 2020 2021 2020 $ 844,000 $ 934,000 Total revenue Expenses: Cost of goods sold $ 404,000 $ 400,000 Selling and general expenses 234,000 262,000 Interest expense 9,300 12,000 84,000 86,000 Income tax expense 731,300 760,000 Total expenses $ 112,700 $ 174,000 Net income McCormick Music Co. Comparative Income Statements Years Ended December 31, 2021 and 2020 2021 2020 $ 844,000 $ 934,000 Total revenue Expenses: Cost of goods sold $ 404,000 $ 400,000 Selling and general expenses 234,000 262,000 Interest expense 9,300 12,000 84,000 86,000 Income tax expense 731,300 760,000 Total expenses $ 112,700 $ 174,000 Net income