Use the income statement below for this question.

What comments would you make on each of the following bullet points when comparing Period n to Period n-1?

• negative 20% change in sales
• negative 50% change in dep and amort
• positive 150% change in interest
• no change in common dividends
• positive 55.88% change in total current liabilities
• negative 71.74% change in EBIT
• negative 81.82% change in pre-tax income
• negative 131.71% change in NI after dividends

Income Statement n n-1 Change Given Sales 10.000 12.500 -20.00% Given Given Operatng costs exchiding depreciation Depreciation and amortization Earnings before interest and taxes 9.000 350 9.500 700 -5.26% -50.00% Calc 650 2,300 -71.74% Given Interest 250 100 150.00% Calc Pre-tax income 400 2,200 -81.82% Given/Calc 40% Taxes (40%) 160 880 -81.82% Calc Net income 240 1,320 -81.82% Given Common dividends 500 500 0.00% Calc Net income after dividents (260) 820 -131.71%