Question - Horizontal and Vertical Analyses
Comparative income statements are available for Johanna's Fine Furs:
|
|
2012
|
2011
|
|
Sales
|
$850,000
|
$800,000
|
|
Cost of sales
|
325,000
|
275,000
|
|
Gross profit
|
525,000
|
525,000
|
|
Operating expenses
|
175,000
|
120,000
|
|
Operating profit
|
350,000
|
405,000
|
|
Income tax expense
|
105,000
|
121,500
|
|
Net income
|
$245,000
|
$283,500
|
Perform horizontal analysis on each of the items in the above comparative income statements. Round percentages to one decimal point (i.e., 10.1%). Enter negative values for decreasing numbers. If an amount is zero, enter zero. Omit % sign in your responses.