The comparative condensed income statements of Emley Corpora

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 $778,800 569,040 209,760 147,500 $62,260 $708,000 495,600 212,400 141,600 70,800 Prepare a honizontal analysis of the income statement data for Emley Corporation using 2016 as a base. (Enter number e.g.-45,-45% or parentheses e.g. (45), (45%). Round percentages to 1 d EMLEY CORPORATION During 2017 2017 2016 Net sales $778,800: $708,000 Cost of goods sold 569,040 495.600

Solution

EMILY CORPORATION

Condensed Income Statement

Increase or (Decrease)

2017

2018

Amount

Percentage

Net Sales

$       778,800

$ 708,000

$       -70,800

-9.1%

%

Cost of Goods Sold

$       569,040

$ 495,600

$       -73,440

-12.9%

Gross Profit

$       209,760

$ 212,400

$           2,640

1.3%

Operating Expenses

$       147,500

$ 141,600

$         -5,900

-4.0%

Net Income

$         62,260

$   70,800

$           8,540

13.7%

Percentage %

Net Sales= -$70,800/$778,800 x 100=-9.1%

Cost of Goods Sold= -$73,440/$569,040 x 100=-12.9%

Gross Profit= $2,640/$209,760x 100=1.3%

Operating Expenses= -$5,900/$147,500 x 100=-4.0%
Net Income=$8,540/$62,260 x 100%=13.7%

EMILY CORPORATION
Condensed Income Statement
			Increase or (Decrease)
	2017	2018	Amount	Percentage
Net Sales	$       778,800	$ 708,000	$       -70,800	-9.1%	%
Cost of Goods Sold	$       569,040	$ 495,600	$       -73,440	-12.9%
Gross Profit	$       209,760	$ 212,400	$           2,640	1.3%
Operating Expenses	$       147,500	$ 141,600	$         -5,900	-4.0%
Net Income	$         62,260	$   70,800	$           8,540	13.7%