Question
Horizontal Analysis of Income Statement The following data (in millions) are taken from the financial statements...
Horizontal Analysis of Income Statement
The following data (in millions) are taken from the financial statements of Tarrow Corporation.
| Recent Year | Prior Year | |||
| Revenue | $863,654 | $814,000 | ||
| Operating expenses | 739,056 | 692,000 | ||
| Operating income | $124,598 | $122,000 | ||
a. For Tarrow Corporation, determine the amount of change in millions and the percent of change (round to one decimal place) from the prior year to the recent year for:
Revenue
Operating expenses
Operating income
| Amount of Change (in millions) |
Percent of Change (round to 1 decimal place) |
Increase or Decrease |
|
| 1. Revenue | $ | % | Increase |
| 2. Operating expenses | $ | % | Increase |
| 3. Operating income | $ | % | Increase |
b. During the recent year, revenue increased and operating expenses increased . As a result, operating income increased , from the prior year.
Homework Answers
Answer #1
1) Amount of change revenue = Recent year - prior year
Amount of change revenue = $863,654 - $814,000
Amount of change revenue = $ 49,654
Percentage of change revenue = ( $863,654 - $814,000 ) 
$814,000
Percentage of change = 6.1%
_________________________________________________________
2) Amount of change operating expenses = $ 739,056 - $ 692,000
Amount of change operating expenses = $ 47,056
Percentage of change operating expenses = ( $ 739,056 - $
692,000) $ 692,000
Percentage of change operating expenses = 6.8%
___________________________________________________________________
3) Amount of change operating income = $124,598 - $122,000
Amount of change operating income = $ 2598
Percentage of change operating income = ($124,598 -
$122,000)$122,000
Percentage of change operating income = 2.13%
Not the answer you're looking for?
Similar Questions
Horizontal Analysis of Income Statement The following data (in millions) were taken from the financial statements...
Horizontal Analysis of Income Statement The following data (in
millions) were taken from the financial statements of Costco
Wholesale Corporation: Recent Year Prior Year Revenue $365,150
$335,000 Operating expenses 346,422 321,000 Operating income
$18,728 $14,000 a. For Costco, determine the amount of change in
millions and the percent of change (round to one decimal place)
from the prior year to the recent year for: Revenue Operating
expenses Operating income Amount of Change (in millions) Percent of
Change (round to 1...
Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years...
Horizontal Analysis of the Income Statement
Income statement data for Winthrop Company for two recent years
ended December 31, are as follows:
Current
Year
Previous
Year
Sales
$550,000
$440,000
Cost of goods sold
467,400
380,000
Gross profit
$82,600
$60,000
Selling expenses
$24,150
$21,000
Administrative expenses
20,910
17,000
Total operating expenses
$45,060
$38,000
Income before income tax
$37,540
$22,000
Income tax expenses
15,000
8,800
Net income
$22,540
$13,200
a. Prepare a comparative income statement with
horizontal analysis, indicating the increase (decrease)...
Horizontal Analysis of the Income Statement Income statement data for Boone Company for the years ended...
Horizontal Analysis of the Income Statement
Income statement data for Boone Company for the years ended
December 31, 20Y5 and 20Y4, are as follows:
20Y5
20Y4
Sales
$487,500
$390,000
Cost of goods sold
(414,800)
(340,000)
Gross profit
$72,700
$50,000
Selling expenses
$(20,700)
$(18,000)
Administrative expenses
(18,450)
(15,000)
Total operating expenses
$(39,150)
$(33,000)
Income before income tax
$33,550
$17,000
Income tax expenses
(13,400)
(6,800)
Net income
$20,150
$10,200
a. Prepare a comparative income statement with
horizontal analysis, indicating the increase (decrease)...
Income statement data for Winthrop Company for two recent years ended December 31 are as follows:...
Income statement data for Winthrop Company for two recent years
ended December 31 are as follows:
1
Current Year
Previous Year
2
Sales
$1,846,800.00
$1,620,000.00
3
Cost of goods sold
1,541,430.00
1,401,300.00
4
Gross profit
$305,370.00
$218,700.00
5
Selling expenses
$80,500.00
$70,000.00
6
Administrative expenses
50,600.00
46,000.00
7
Total operating expenses
$131,100.00
$116,000.00
8
Income before income tax
$174,270.00
$102,700.00
9
Income tax expense
12,960.00
8,100.00
10
Net income
$161,310.00
$94,600.00
A.
Prepare a comparative income
statement with horizontal analysis,...
Prepare a horizontal analysis of the comparative income statement of Mariner Designs, Inc. Round percentage changes...
Prepare a horizontal analysis of the comparative income
statement of Mariner Designs, Inc. Round percentage changes to one
decimal place.
2018
2017
increase amount
decrease percentage
net sales revenue
429,750
373,450
cost of goods sold
200,250
186,250
selling and general expenses
98,000
92,000
other expenses
9,150
6,000
total expenses
307,400
284,250
net income
122,350
89,200
2. Why did 2018 net income increase by a higher percentage than
net sales revenue?
net income increased by a higher percentage than...
Horizontal Analysis of Income Statement For 20Y2, McDade Company reported a decline in net income. At...
Horizontal Analysis of Income Statement
For 20Y2, McDade Company reported a decline in net income. At
the end of the year, T. Burrows, the president, is presented with
the following condensed comparative income statement:
McDade Company
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Y2
20Y1
Sales
$495,121
$437,000
Cost of goods sold
358,400
280,000
Gross profit
$136,721
$157,000
Selling expenses
$49,950
$37,000
Administrative expenses
28,800
23,000
Total operating expenses
$78,750
$60,000
Income from operations
$57,971...
Income statement data for Winthrop Company for two recent years ended December 31, are as follows:...
Income statement data for Winthrop Company for two recent years
ended December 31, are as follows:
Current
Year
Previous
Year
Sales
$1,016,400
$770,000
Cost of goods sold
845,000
650,000
Gross profit
$171,400
$120,000
Selling expenses
$52,460
$43,000
Administrative expenses
46,800
36,000
Total operating expenses
$99,260
$79,000
Income before income tax
$72,140
$41,000
Income tax expenses
28,900
16,400
Net income
$43,240
$24,600
a. Prepare a comparative income statement with
horizontal analysis, indicating the increase (decrease) for the
current year when compared...
Income statement data for Boone Company for two recent years ended December 31, are as follows:...
Income statement data for Boone Company for two recent years
ended December 31, are as follows:
Current
Year
Previous
Year
Sales
$396,000
$330,000
Cost of goods sold
330,400
280,000
Gross profit
$65,600
$50,000
Selling expenses
$17,600
$16,000
Administrative expenses
16,520
14,000
Total operating expenses
$34,120
$30,000
Income before income tax
$31,480
$20,000
Income tax expenses
12,600
8,000
Net income
$18,880
$12,000
a. Prepare a comparative income statement with
horizontal analysis, indicating the increase (decrease) for the
current year when compared...
Common-Size Income Statements Consider the following income statement data from the Ross Company: 2013 2012 Sales...
Common-Size Income Statements
Consider the following income statement data from the Ross
Company:
2013
2012
Sales revenue
$525,000
$450,000
Cost of goods sold
336,000
279,000
Selling expenses
107,000
101,000
Administrative expenses
62,000
56,000
Income tax expense
9,800
7,400
Prepare common-size income statements for each year.
Note: Round answers to one
decimal place (ex: 0.2345 = 23.5%).
ROSS COMPANY
Common-Size Income Statements
(Percent of Sales Revenue)
2013
2012
Sales Revenue
Answer
Answer
Cost of Goods Sold
Answer
Answer
Gross Profit on...
Horizontal Analysis of Income Statement For 20Y2, McDade Company reported a decline in net income. At...
Horizontal Analysis of Income Statement For 20Y2, McDade Company
reported a decline in net income. At the end of the year, T.
Burrows, the president, is presented with the following condensed
comparative income statement: McDade Company Comparative Income
Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1
Sales $756,616 $674,000 Cost of goods sold 541,800 430,000 Gross
profit $214,816 $244,000 Selling expenses $75,530 $57,000
Administrative expenses 44,420 36,000 Total operating expenses
$119,950 $93,000 Income from operations $94,866...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 26 minutes ago
asked 30 minutes ago
asked 33 minutes ago
asked 36 minutes ago
asked 46 minutes ago
asked 47 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago