Prepare a horizontal analysis of the income statement data

Question

The comparative condensed income statements of Emley Corporation are shown below. EMLEY CORPORATION Comparative Condensed Income Statements For the Years Ended December 31 2015 2014 Net sales $660,000 $600,000 Cost of goods sold 483,000 420,000 Gross profit 177,000 180,000 Operating expenses 125,000 120,000 Net income $ 52,000 $ 60,000

Prepare a horizontal analysis of the income statement data for Emley Corporation using 2014 as a base. (Round percentages to 1 decimal place, e.g. 12.3%.) EMLEY CORPORATION Condensed Income Statements For the Years Ended December 31 Increase or (Decrease) During 2015 2015 2014 Amount Percentage Net sales $660,000 $600,000 $ % Cost of goods sold 483,000 420,000 % Gross profit 177,000 180,000 % Operating expenses 125,000 120,000 % Net income $52,000 $60,000 $ %

Prepare a vertical analysis of the income statement data for Emley Corporation in columnar form for both years. (Round percentages to 1 decimal place, e.g. 12.3%.) EMLEY CORPORATION Condensed Income Statements For the Years Ended December 31 2015 2014 Amount Percent Amount Percent Net sales $660,000 % $600,000 % Cost of goods sold 483,000 % 420,000 % Gross profit 177,000 % 180,000 % Operating expenses 125,000 % 120,000 % Net income $ 52,000 % $ 60,000 %