The income statement for Sports Emporium for the years ending December 31, 2013 and 2012 is provided below.

Required:
1. Complete the "Amount" and "%" columns to be used in a horizontal analysis of Sports Emporium's income statement.
2. Discuss the major fluctuations in income statement items during the year.

Transcribed Image Text:

SPORTS EMPORIUM Income Statement years ended December 31 For the Increase (Decrease) 2013 2012 Amount Sales revenue $3,200,000 $2,420,000 050,000 1,330,000 1,150,000 ,090,000 590,000 500,000 5,000 505,000 130,000 $ 303,000 $ 375,000 Cost of goods sold Gross profit 760,000 390,000 8,000 398,000 95,000 Other income (expense) Income before tax Income tax expense Net income