Lewis Company has a condensed income statement as shown below. Sales Wages expense Rent expense Utilities expense Total operating expenses Net income Year 2 $178,400 $100,000 33,000 30,000 $163,000 $15,400 Year 1 $162,500 $92,500 30,000 25,000 $147,500 $15,000 Required: Prepare a horizontal analysis of Lewis Company's income statements. Comment on the trends, both favorable and unfavorable. If required, round your answers to one decimal place. For those boxes in which you must enter subtractive or negative numbers use a minus sign.

Lewis Company has a condensed income statement as shown below. Sales Wages expense Rent expense Utilities expense Total operating expenses Net income Year 2 $178,400 $100,000 33,000 30,000 $163,000 $15,400 Year 1 $162,500 $92,500 30,000 25,000 $147,500 $15,000 Required: Prepare a horizontal analysis of Lewis Company's income statements. Comment on the trends, both favorable and unfavorable. If required, round your answers to one decimal place. For those boxes in which you must enter subtractive or negative numbers use a minus sign.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 1MCQ

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The following is select account information for August Sundries. Sales: $850,360; Sales Returns and Allowances: $148,550; COGS: $300,840; Operating Expenses: $45,770; Sales Discounts: $231,820. If August Sundries uses a multi-step income statement format, what is their gross margin?
Forecast Income Statement and Balance Sheet Following are the income statement and balance sheet for Medtronic PLC. Note: Complete the entire question using the following Excel template: Excel Template. Then enter the answers into the provided spaces below with two decimal places. Medtronic PLC Consolidated Statement of Income $ millions, For Fiscal Year Ended April 26, 2019 Net sales $30,557 Costs and expenses Cost of products sold 9,155 Research and development expense 979 Selling, general, and administrative expense 10,418 Amortization of intangible assets 1,764 Restructuring charges, net 83 Certain litigation charges, net 166 Other operating expense, net 258 Operating profit 7,734 Other nonoperating income, net (157) Interest expense 1,444 Income before income taxes 6,447 Income tax provision 547 Net income 5,900 Net income loss attributable to noncontrolling interests (19) Net income attributable to Medtronic $5,881…
Forecast Income Statement and Balance Sheet Following are the income statement and balance sheet for Medtronic PLC. Note: Complete the entire question using the following Excel template: Excel Template. Then enter the answers into the provided spaces below with two decimal places. Medtronic PLC Consolidated Statement of Income $ millions, For Fiscal Year Ended April 26, 2019 Net sales $30,557 Costs and expenses Cost of products sold 9,155 Research and development expense 979 Selling, general, and administrative expense 10,418 Amortization of intangible assets 1,764 Restructuring charges, net 83 Certain litigation charges, net 166 Other operating expense, net 258 Operating profit 7,734 Other nonoperating income, net (157) Interest expense 1,444 Income before income taxes 6,447 Income tax provision 547 Net income 5,900 Net income loss attributable to noncontrolling interests (19) Net income attributable to Medtronic $5,881…
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