Income statements for Puppy Daycare Company for Year 3 and Year 4 follow:ItemsSalesCost of goods soldSelling expensesAdministrative expensesTotal expensesIncome before taxesIncome tax expenseNet incomeRequired A Required BYear 4$159,000SalesCost of goods soldSelling expenses73,50023,65032,500Administrative expensesTotal expensesIncome before taxesIncome taxesNet income129,65029,350Required:a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4.b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.5,870$ 23,480Complete this question by entering your answers in the tabs below.$Year 3$140,600Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year4.Note: Round percentages to 1 decimal place. Negative amounts should be entered with a minus sign.43,40026,50030,600100,50040,10010,025$30,075Puppy Daycare CompanyHorizontal Analysis of Income StatementsYear 4Year 300 $< Required A00% Change over Year 3Required B >

Comparative financial statements are used to compare two or more years to understand the financial…

= for Puppy Daycare Company for Year 3 and Year 4 follow: Year 4 $159,000 73,500 23,650 32,500 129,650 29,350 5,870 $ 23,480 nd xpenses xes se Year 3 $140,600 43,400 26,500 30,600 100,500 40,100 10,025 $ 30,075 ntal analysis, showing the percentage change in each income statement al analysis showing each income statement component as a percentage o

= for Puppy Daycare Company for Year 3 and Year 4 follow: Year 4 $159,000 73,500 23,650 32,500 129,650 29,350 5,870 $ 23,480 nd xpenses xes se Year 3 $140,600 43,400 26,500 30,600 100,500 40,100 10,025 $ 30,075 ntal analysis, showing the percentage change in each income statement al analysis showing each income statement component as a percentage o

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter9: Operating Activities

Section: Chapter Questions

Problem 2AIC

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