Comparative income statements for Chicago Company are provided below:
$\begin{array}{c}
\text {Chicago Company}\
\text {Comparative Income Statement}\
\text {Years Ended December 31,}\
\begin{array}{lrr}
&\text {Year 2}&\text {Year 1}\
\text { Sales } & \$288,000 & \$ 302,190 \
\text { Less cost of goods sold } & 101,350 & 115,400 \
\text { Gross margin } &186,650 & 186,790 \
\text { Less operating expenses } & 89,970&99,770\
\text { Income before taxes } & 96,680&87,020\
\text { Income taxes } & 38,672 & 34,808\
\text { Met income } & \$ 58,008 & \$ 52,212
\end{array}\end{array}$ Required:
Perform a horizontal analysis of Chicago Company's income statement by computing horizontal percentages for each item. Round your answer to one decimal place (i.e., 22.5%).

Question

Comparative income statements for Chicago Company are provided below:
 $\begin{array}{c}
\text {Chicago Company}\
\text {Comparative Income Statement}\
\text {Years Ended December 31,}\
\begin{array}{lrr}
&\text {Year 2}&\text {Year 1}\
\text { Sales } & \$288,000 & \$ 302,190 \
\text { Less cost of goods sold } & 101,350 & 115,400 \
\text { Gross margin } &186,650 & 186,790 \
\text { Less operating expenses } & 89,970&99,770\
\text { Income before taxes } & 96,680&87,020\
\text { Income taxes } & 38,672 & 34,808\
\text { Met income } & \$ 58,008 & \$ 52,212
\end{array}\end{array}$ Required:
Perform a horizontal analysis of Chicago Company's income statement by computing horizontal percentages for each item. Round your answer to one decimal place (i.e., 22.5%).

Quizplus · Accepted Answer

The Answer of Comparative income statements for Chicago Company are provided below:
 $\begin{array}{c}
\text {Chicago Company}\
\text {Comparative Income Statement}\
\text {Years Ended December 31,}\
\begin{array}{lrr}
&\text {Year 2}&\text {Year 1}\
\text { Sales } & \$288,000 & \$ 302,190 \
\text { Less cost of goods sold } & 101,350 & 115,400 \
\text { Gross margin } &186,650 & 186,790 \
\text { Less operating expenses } & 89,970&99,770\
\text { Income before taxes } & 96,680&87,020\
\text { Income taxes } & 38,672 & 34,808\
\text { Met income } & \$ 58,008 & \$ 52,212
\end{array}\end{array}$ Required:
Perform a horizontal analysis of Chicago Company's income statement by computing horizontal percentages for each item. Round your answer to one decimal place (i.e., 22.5%).

Comparative Income Statements for Chicago Company Are Provided Below Required: Perform a Horizontal Analysis of Chicago Company's Income Statement

Comparative Income Statements for Chicago Company Are Provided Below Required:
Perform a Horizontal Analysis of Chicago Company's Income Statement