Question

Question 1

Prepare a horizontal analysis of the following comparative income statement for Westwind Corporation. Round percentage changes to the nearest one-tenth percent.

Westwind Corporation
Comparative Income Statement
For the Years Ended December 31, 2016 and 2015
	2016	2015
Total revenue	$1,400,000	$1,250,000
Expenses:
Cost of goods sold	925,000	$830,000
Operating expenses	313,000	280,000
Interest expense	14,000	12,000
Income tax expense	48,300	38,000
Total expenses	$1,300,300	$1,160,000
Net Income	$99,700	$90,000

Answer 1

Compartive income statement					Increase(decrease)
for the years ended december 31,2016 and 2015					Amount	percentage
			2016	2015
total revenue			1,400,000	1,250,000	150,000	12.0%
Expenses:
cost of goods sold			925,000	830,000	95,000	11.4%
operating expenses			313,000	280,000	33,000	11.8%
interest expense			14,000	12,000	2,000	16.7%
income tax expense			48,300	38,000	10,300	27.1%
total expenses			1,300,300	1,160,000	140,300	12.1%
Net income			99,700	90,000	9,700	10.8%