Income statement data for Winthrop Company for two recent years ended December 31 are as...
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Accounting
Income statement data for Winthrop Company for two recent years ended December 31 are as follows:
| 1 |
| Current Year | Previous Year |
| 2 | Sales | $1,993,600.00 | $1,780,000.00 |
| 3 | Cost of goods sold | 1,674,090.00 | 1,521,900.00 |
| 4 | Gross profit | $319,510.00 | $258,100.00 |
| 5 | Selling expenses | $73,450.00 | $65,000.00 |
| 6 | Administrative expenses | 48,840.00 | 44,000.00 |
| 7 | Total operating expenses | $122,290.00 | $109,000.00 |
| 8 | Income before income tax | $197,220.00 | $149,100.00 |
| 9 | Income tax expense | 13,884.00 | 8,900.00 |
| 10 | Net income | $183,336.00 | $140,200.00 |
| A. | Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. Round percentages to one decimal place. |
| B. | What conclusions can be drawn from the horizontal analysis? Round the answers to one decimal place. |
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