Homework SoursePlease make a horizontal analysis of this income statementSo
Please make a horizontal analysis of this income statement.
Solution
Solution:
| Horizontal Analysis of income statement | ||||
| Increase (Decrease) in 2005 (Versus 2004) | ||||
| Particulars | 2005 | 2004 | Amount | Percentage |
| Income Statement: | ||||
| Sales Revenue | $912,473.00 | $851,634.00 | $60,839.00 | 7.1% |
| Cost of goods Sold | $788,876.00 | $766,567.00 | $22,309.00 | 2.9% |
| Gross Profit | $123,597.00 | $85,067.00 | $38,530.00 | 45.3% |
| Depreciation and amortization | $35,083.00 | $31,869.00 | $3,214.00 | 10.1% |
| Lease cancellation and related costs | $0.00 | $2,300.00 | -$2,300.00 | -100.0% |
| Operating earnings | $88,514.00 | $50,898.00 | $37,616.00 | 73.9% |
| Investment income | $9,639.00 | $9,584.00 | $55.00 | 0.6% |
| Interest on long term debt | $1,919.00 | $4,792.00 | -$2,873.00 | -60.0% |
| Earning before income taxes | $96,234.00 | $55,690.00 | $40,544.00 | 72.8% |
| Income taxes | $29,327.00 | $15,655.00 | $13,672.00 | 87.3% |
| Net Earnings | $66,907.00 | $40,035.00 | $26,872.00 | 67.1% |
| Earning per share: | ||||
| Basic | $1.94 | $1.17 | $0.77 | 65.8% |
| Diluted | $1.90 | $1.15 | $0.75 | 65.2% |
