Horizontal Analysis of the Income Statement
Income statement data for Boone Company for the years ended December 31, 2014 and 2013, are as follows:
| |
2014 |
2013 |
| Sales |
$620,400 |
$470,000 |
| Cost of goods sold |
516,000 |
400,000 |
| Gross profit |
$104,400 |
$70,000 |
| Selling expenses |
$31,720 |
$26,000 |
| Administrative expenses |
28,600 |
22,000 |
| Total operating expenses |
$60,320 |
$48,000 |
| Income before income tax |
$44,080 |
$22,000 |
| Income tax expenses |
17,600 |
8,800 |
| Net income |
$26,480 |
$13,200 |
a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for 2014 when compared with 2013. If required, round to one decimal place. Enter all amounts as positive numbers.