Exercise 184 Part Level Submission The comparative condensed

Exercise 18-4 (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 2015 2014 $604,330$496,670 418,430 Net sales Cost of goods sold Gross profit Operating expenses Net income 478,970 125,360 58,310 67,050 78,240 46,770 $ 31,470 Y (a) Prepare a horizontal analysis of the income statement data for Emley Corporation using 201

Solution

Answers

Increase (decrease)

2015

2014

Amount

Percentage

[A]

[B]

[C = A – B]

[D = (C/B) x 100

Net sales

$       6,04,330.00

$                 4,96,670.00

$        1,07,660.00

21.7%

Cost of Goods Solds

$       4,78,970.00

$                 4,18,430.00

$            60,540.00

14.5%

Gross Profits

$       1,25,360.00

$                     78,240.00

$            47,120.00

60.2%

Operating expenses

$           58,310.00

$                     46,770.00

$            11,540.00

24.7%

Net Income

$           67,050.00

$                     31,470.00

$            35,580.00

113.1%

2015

2014

Amount

Percentage

Net sales

604330

496670

=604330-496670

=107660/496670

Cost of Goods Solds

478970

418430

=478970-418430

=60540/418430

Gross Profits

=604330-478970

=496670-418430

=125360-78240

=47120/78240

Operating expenses

58310

46770

=58310-46770

=11540/46770

Net Income

=125360-58310

=78240-46770

=67050-31470

=35580/31470

			Increase (decrease)
	2015	2014	Amount	Percentage
	[A]	[B]	[C = A – B]	[D = (C/B) x 100
Net sales	$       6,04,330.00	$                 4,96,670.00	$        1,07,660.00	21.7%
Cost of Goods Solds	$       4,78,970.00	$                 4,18,430.00	$            60,540.00	14.5%
Gross Profits	$       1,25,360.00	$                     78,240.00	$            47,120.00	60.2%
Operating expenses	$           58,310.00	$                     46,770.00	$            11,540.00	24.7%
Net Income	$           67,050.00	$                     31,470.00	$            35,580.00	113.1%