Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. income statements for gibson company for year 3 an

Income statements for Gibson Company for Year 3 and Year 4follow:GIBSON COMPANYIncome Statements...Income statements...

70.2K

Verified Solution

Question

Accounting

Income statements for Gibson Company for Year 3 and Year 4follow:

GIBSON COMPANY
Income Statements
Year 4Year 3
Sales$200,000$180,000
Cost of goods sold143,400121,400
Selling expenses22,00020,000
Administrative expenses12,90014,900
Interest expense3,8005,800
Total expenses$182,100$162,100
Income before taxes17,90017,900
Income taxes expense5,4003,500
Net income$12,500$14,400


Required
a. Perform a horizontal analysis, showing thepercentage change in each income statement component between Year 3and Year 4.
b. Perform a vertical analysis, showing eachincome statement component as a percentage of sales for eachyear.

Answer & Explanation Solved by verified expert
3.7 Ratings (357 Votes)
a GIBSON COMPANY Horizontal Analysis of income statement for the year ended december 31 Change in Year 4 Year 3 Dollars a b c ab d cb100 Net sales 200000 180000 20000 111 Cost of goods sold 143400 121400    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

In: AccountingIncome statements for Gibson Company for Year 3 and Year 4follow:GIBSON COMPANYIncome Statements...Income statements for Gibson Company for Year 3 and Year 4follow:GIBSON COMPANYIncome StatementsYear 4Year 3Sales$200,000$180,000Cost of goods sold143,400121,400Selling expenses22,00020,000Administrative expenses12,90014,900Interest expense3,8005,800Total expenses$182,100$162,100Income before taxes17,90017,900Income taxes expense5,4003,500Net income$12,500$14,400Requireda. Perform a horizontal analysis, showing thepercentage change in each income statement component between Year 3and Year 4.b. Perform a vertical analysis, showing eachincome statement component as a percentage of sales for eachyear.

Other questions asked by students

Q

determine whether u v and w lie in the same plane when positioned so that...

Basic Math
Q

Explain the risks and benefits associated with holdinginventoryExplain the risks and benefits associated with...

Accounting
Q

Applying your knowledge of metabolism, glycolysis starts with one molecule of glucose (6C) and produces a...

Biology
Q

1 Which of the following is are false regarding slant cultures Select all that apply...

Biology
Q

Question 4 1 point Triangle RST has coordinates R 1 7 S 3 1 and...

Geometry
Q

Write true or false for the statement.{b, h, j, k} = {j, k, h, b}Choose...

Basic Math
Q

Glasgow Enterprises comenz el perodo con 60 unidades en el inventario inicial que costaron $2.10...

Accounting
Q

If a companys accounts receivable turnover is 8.5 and its inventory turnover is 4.2, then...

Accounting
Q

The cost-volume-profit analysis can also be used in personal financial decision-making. Suppose you are considering...

Accounting
Q

The management of MD Manufacturing prepared the following estimated balance sheet for March 2015: ...

Accounting
Q

Exercise 6.16 Weighted Average Method, FIFO Method, Physical Flow, EquivalentB Units Heap Company manufactures a...

Accounting
Q

A company has been growing at a fast rate of 25% per year recently and...

Finance