The income statements for Federer Sports Apparel for 2019 an

The income statements for Federer Sports Apparel for 2019 and 2018 are presented below Required Prepare a horizontal analysis for 2019 using 2018 as the base year. (Decreases should be indicated with a minus sign. Round your percentage answers to 1 decimal place.) FEDERER SPORTS APPAR Income Statement For the Years Ended December 31 Increase Decrease Year 2019 2018 Amount % Net sales 18,800,000 15,500,000 goods13,200,000 7,000,000 Gross prof 5,600,000 8,500,000 1,600,0001,200,000 1,000,0001,000,000 0 Loss (litigation 1,500,000300,000 Cost of sold Operating expenses Depreciation expense Inventory 200,000 down Incnme Hints References eBook & Resources Hint #1 Check my work

Solution

Horizontal analysis :

	2019	2018	Amount	%
Net Sales	18800000	15500000	3300000	21.3%
Cost of goods sold	13200000	7000000	6200000	88.6%
Gross profit	5600000	8500000	-2900000	-34.1%
Operating expense	1600000	1200000	400000	33.3%
Depreciation expense	1000000	1000000	0	0%
Inventory write down	200000	0	200000	100%
Loss (litigation)	1500000	300000	1200000	4%
Income	1300000	6000000	-4700000	-78.3%