Horizontal and Vertical Analysis of income statement.
Financial information for Blevins Inc. is presented below.
|
|
2009
|
2008
|
|
|
Amount
|
Amount
|
|
Sales
|
$750,000
|
$600,000
|
|
Cost of goods sold
|
465000
|
390000
|
|
Gross profit
|
$285,000
|
210000
|
|
Selling expenses
|
120000
|
72,000
|
|
Administrative expense
|
$60,000
|
54,000
|
|
Income before tax
|
$105,000
|
84,000
|
|
Income tax expense
|
$33,000
|
24,000
|
|
Net income
|
$72,000
|
60,000
|
Prepare a schedule showing a vertical analysis for 2009 and 2008.
Prepare horizontal analysis.
Prepare vertical analysis.