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

Question 147

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Comparative income statements for Chicago Company are provided below:  Chicago Company Comparative Income StatementYears Ended December 31, Sales Less cost of goods soldGross margin Less operating expenses Income before taxesIncome taxesNet income2014288,000101,350186,65089,97096,68038,67258,0082013302,190115,400186,79099,77087,02034,80852,212\begin{array}{l}\hline \quad\quad\quad\quad\quad\quad\quad \text { Chicago Company }\\\hline \quad\quad\quad\quad \text {Comparative Income Statement}\\\hline \quad\quad\quad\quad\quad\text {Years Ended December 31,}\\\begin{array}{|l|}\hline\\\hline \text { Sales }\\\hline \text {Less cost of goods sold}\\\hline \text {Gross margin }\\\hline \text {Less operating expenses }\\\hline \text {Income before taxes}\\\hline \text {Income taxes}\\\hline \text {Net income}\\\hline\end{array}\begin{array}{l|}\hline 2014 \\\hline 288,000 \\\hline \underline {101,350} \\\hline 186,650 \\\hline \underline {89,970} \\\hline 96,680 \\\hline \underline {38,672} \\\hline \underline {58,008} \\\hline \end{array}\begin{array}{l|}\hline 2013 \\\hline 302,190 \\\hline \underline {115,400} \\\hline 186,790 \\\hline \underline {99,770} \\\hline 87,020 \\\hline \underline {34,808} \\\hline \underline {52,212} \\\hline \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%).

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