80.2K

Verified Solution

Link Copied!

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

BURCH COMPANY Income Statements
	Year 4	Year 3
Sales	$ 200,600	$ 180,600
Cost of goods sold	142,400	120,400
Selling expenses	21,700	19,700
Administrative expenses	12,700	14,700
Interest expense	3,500	5,500
Total expenses	$ 180,300	$ 160,300
Income before taxes	20,300	20,300
Income taxes expense	6,300	3,500
Net income	$ 14,000	$ 16,800

Required

1. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4.
2. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.

Income statements for Perez Company for Year 3 and Year 4 follow: Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. Note: Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (i.e., .234 should be entered as 23,4). Complete this question by entering your answers in the tabs below. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. Note: Percentages may not add exactly due to rounding. Round your answers to 1 decimal place. (i.e., .234 should be entered as 23,4 )

Answer & Explanation Solved by verified expert

See Answer