Horizontal Analysis of the Statement of Income Revenue Cost of sales Gross profit Other income Distribution costs Salaries Commissions Travelling Advertising Depreciation/amortization Total distribution costs Administrative expenses Salaries Leasing Depreciation/amortization Total administrative expenses Finance costs Total other income/expenses Profit before taxes Income tax expense Profit for the year 2013 350,000 420,000 177,000 209,000 173,000 211,000 5,000 50,000 2,000 2,000 3,000 20,000 77,000 30,000 5,000 18,000 53,000 2014 $ Change % Change 10,000 38,000 13,000 5,000 60,000 3,000 3,000 5,000 20,000 91,000 38,000 7,000 20,000 65,000 135,000 165,000 14,000 46,000 13,000 25,000 33,000 70,000 20.00% 2015 800,000 380,000 406,000 394,000 5,000 80,000 5,000 5,000 10,000 40,000 140,000 60,000 10,000 40,000 110,000 30,000 275,000 119,000 42,000 $ Change % Change 77,000 90.48%
Horizontal Analysis of the Statement of Income Revenue Cost of sales Gross profit Other income Distribution costs Salaries Commissions Travelling Advertising Depreciation/amortization Total distribution costs Administrative expenses Salaries Leasing Depreciation/amortization Total administrative expenses Finance costs Total other income/expenses Profit before taxes Income tax expense Profit for the year 2013 350,000 420,000 177,000 209,000 173,000 211,000 5,000 50,000 2,000 2,000 3,000 20,000 77,000 30,000 5,000 18,000 53,000 2014 $ Change % Change 10,000 38,000 13,000 5,000 60,000 3,000 3,000 5,000 20,000 91,000 38,000 7,000 20,000 65,000 135,000 165,000 14,000 46,000 13,000 25,000 33,000 70,000 20.00% 2015 800,000 380,000 406,000 394,000 5,000 80,000 5,000 5,000 10,000 40,000 140,000 60,000 10,000 40,000 110,000 30,000 275,000 119,000 42,000 $ Change % Change 77,000 90.48%
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 74E
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