Exercise 144 Part Level Submission The comparative condensed

Exercise 14-4 (Part Level Submission) The comparative condensed income statements of Emley Corporation are shown below EMLEY CORPORATION Comparative Condensed Income Statements For the Years Ended December 31 Net sales Cost of goods sold Gross profit Operating expenses Net income 2017 $686,400 502,320 184,080 130,000 $54,080 2016 $624,000 435,800 188,200 124,800 $ 63,400 (a) Prepare a horizontal analysis of the income statement data for Emley Corporation using 2016 as a base. (Enter negative amounts and percentages using either a negative sign preceding the number e.g.-45,-45% or parentheses e.g. (45), (4596). Round percentages to 1 decimal place, e.g 12.3%.) EMLEY CORPORATION Condensed Income Statements Increase or (Decrease) During 2017 2017 2016 Amount Percentage Net sales $686,400 $624,000 Cost of goods sold 502,320 435,800 184,080188,200 Operating expenses 130,000 124,800 $54,080 $63,400 0% 0% 0% 0% Gross profit Net income 0%

Solution

Answer:

EMLEY CORPORATION
Condensed Income Statements
			Increase or (Decrease) during 2017
	2017	2016	Amount (2017 - 2016)	Percentage(2017-2016 /2016)*100
Net sales	686,400	624,000	62,400	10.0%
Cost of goods sold	502,320	435,800	66,520	15.3%
Gross profit	184,080	188,200	(4,120)	-2.2%
Operating expenses	130,000	124,800	5,200	4.2%
Net income	54,080	63,400	(9,320)	-14.7%