Here are the comparative condensed income statements of Delaney Corporation.

Instructions

a. Prepare a horizontal analysis of the income statement data for Delaney Corporation, using 2021 as a base. (Show the amounts of increase or decrease.)

b. Prepare a vertical analysis of the income statement data for Delaney Corporation for both years.

Compute liquidity ratios.

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Delaney Corporation Condensed Income Statements For the Years Ended December 31 2022 2021 Net sales $598,000 $500,000 Cost of goods sold 477,000 420,000 Gross profit Operating expenses 121,000 80,000 80,000 44,000 Net income $ 41,000 $ 36,000