Question

Here are the comparative income statements of Whispering Winds Corporation.

WHISPERING WINDS CORPORATION Comparative Income Statements For the Years Ended December 31
		December 31, 2022		December 31, 2021
Net sales		$688,000		$576,000
Cost of goods sold		445,000		417,000
Gross profit		243,000		159,000
Operating expenses		145,000		108,000
Net income		$98,000		$51,000

Prepare a horizontal analysis of the income statement data for Whispering Winds Corporation using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -12.1% or (55,000), (12.1%). Round percentages to 1 decimal place, e.g. 12.1%.)

WHISPERING WINDS CORPORATION Comparative Income Statements For the Years Ended December 31
						Increase or (Decrease) During 2022
		December 31, 2022		December 31, 2021		Amount		Percentage
Net sales		$688,000		$576,000					%
Cost of goods sold		445,000		417,000					%
Gross profit		243,000		159,000					%
Operating expenses		145,000		108,000					%
Net income		$98,000		$51,000					%

Answer 1