Question

Rate of Change Analyses

Teicher Company presents the following condensed comparative income statements for 2015, 2016, and 2017:

	For Years Ended December 31,
	2017		2016		2015
Sales (net)	$120,000		$100,000		$85,000
Cost of goods sold	(72,000)		(55,000)		(45,000)
Gross profit	$48,000		$45,000		$40,000
Operating expenses	(22,000)		(20,000)		(18,000)
Operating income	$26,000		$25,000		$22,000
Other items:
Dividend revenue	400		500		200
Interest expense	(1,200)		(1,000)		(500)
Income before income taxes	$25,200		$24,500		$21,700
Income tax expense	(8,200)		(8,000)		(6,000)
Net income	$17,000		$16,500		$15,700
Number of common shares	6,000		6,000		5,000
Earnings per share	$2.83		$2.75		$3.14

Required:

Prepare rate of change analyses for Teicher for 2016 and 2017 using year-to-year growth rates.

Round Earnings per Share computation to two decimal places. If required, round all percentage changes to one decimal place. Use a minus sign to indicate any decrease in the year-to-year analysis. If an amount is zero, enter a "0"; do not leave the amount box blank.

TEICHER COMPANY
Comparative Income Statements
Rate of Change Analysis
	For Year Ended December 31 2017	For Year Ended December 31 2016	For Year Ended December 31 2015	Year-to-Year Increase (Decrease) 2016 to 2017 Amount	Year-to-Year Increase (Decrease) 2016 to 2017 %	Year-to-Year Increase (Decrease) 2015 to 2016 Amount	Year-to-Year Increase (Decrease) 2015 to 2016 %
Sales (net)	$	$	$	$		$
Cost of goods sold
Gross profit	$	$	$	$		$
Operating expenses
Operating income	$	$	$	$		$
Other items:
Dividend revenue
Interest expense
Income before income taxes	$	$	$	$		$
Income tax expense
Net income	$	$	$	$		$
Number of common shares
Earnings per share	$	$	$	$		$

Answer 1