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Prepare a horizontal analysis of the balance sheet data for Nike, using 2019 as a base....

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Accounting

Prepare a horizontal analysis of the balance sheet data forNike, using 2019 as a base. (Show the amount of increase ordecrease as well.)

b. Prepare a vertical analysis of the balancesheet data for Nike for 2020.

Prepare horizontal and vertical analyses.

E13.6 (LO 2) Here are the comparative incomestatements of Delaney Corporation.

Delaney Corporation

Comparative Income Statements

For the Years Ended December 31

    2020    2019
Net sales    $598,000    $500,000
Cost of goods sold477,000420,000
Gross profit121,00080,000
Operating expenses80,00044,000
Net income$?41,000$?36,000

Answer & Explanation Solved by verified expert
3.8 Ratings (606 Votes)

Comparative Income Statement - Horizontal Analysis
2020 2019 Difference Horizontal Analysis
(a) (b) (c) = (a) - (b) (b) / (c)
Sales $ 5,98,000 $           5,00,000 $     98,000 19.60%
Cost of goods sold $ 4,77,000 $           4,20,000 $     57,000 13.57%
Gross profit $ 1,21,000 $               80,000 $     41,000 51.25%
Operating expenses $     80,000 $               44,000 $     36,000 81.82%
Net Income $     41,000 $               36,000 $       5,000 13.89%
Comparative Income Statement - Vertical Analysis
2020 Percent of Sales 2019 Percent of Sales
(a) [(a) / $598000] X 100 (b) [(b) / $500000] X 100
Sales $ 5,98,000 100.00% $ 5,00,000 100.00%
Cost of goods sold $ 4,77,000 79.77% $ 4,20,000 84.00%
Gross profit $ 1,21,000 20.23% $     80,000 16.00%
Operating expenses $     80,000 13.38% $     44,000 8.80%
Net Income $     41,000 6.86% $     36,000 7.20%

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