Below is the comparative income statement of Variline Inc EE

Below is the comparative income statement of Variline, Inc. EEB (Click the icon to view the comparative income statement.) Requirements 1. Prepare a horizontal analysis of the comparative income statement of Variline, Inc. Round percentage changes to the nearest tenth of a percent. 2. Why did net income increase by a higher percent than total revenues increased during 2016 Requirement 1. Prepare a horizontal analysis of the comparative income statement of Variline, Inc. Round percentage changes to the nearest tenth of a percent, X.x%. (Use a minus sign or parentheses for a decrease.)

Solution

a) Horizontal Analysis of Comparative Income Statement :-

Particulars	2016	2015	Amount($)	Percentage(%)
Revenue	$512000	$464300	47700	10.27%
Expenses:-
Cost of Goods Sold	257000	236000	21000	8.9%
Selling and General Expenses	124300	118800	5500	4.63%
Interest Expense	4000	5000	(1000)	(20%)
Income Tax Expense	48800	37700	11100	29.44%
Total Expenses	434100	397500	36600	9.21%
Net Income	77900	66800	11100	16.62%