Explore BrainMass

Explore BrainMass

    Horizontal and Vertical Analysis

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Following are the income statements for Martha's Miscellaneous for 2008 and 2009
    Martha's Miscellaneous Comparative Statements of Income and Retained Earnings
    2009 2008 $Change %Change
    Sales revenue $700,000 $650,000
    Cost of goods sold 500,000 455,000
    Gross profit $200,000 $195,000
    Payroll expense $50,000 $42,250
    Insurance expense 30,000 29,000
    Rent expense 18,000 18,000
    Depreciation 35,000 15,000
    Total expenses $133,000 $104,250
    Operating income $67,000 $90,000
    Interest expense (7,000) (5,000)
    Gain on vehicle sale 25,000 -
    Loss on sale of securities (25,000) -
    Interest revenue 75,000 50,000
    Net income before interest and taxes $135,000 $135,750
    Income taxes 40,000 40,250
    Net income $95,000 $95,500
    Dividends 38,000 38,000
    Total retained earnings $57,000 $57,500
    Retained earnings 1/1 193,500 136,000

    Retained earnings 12/31 $250,500 $193,500

    Required
    Complete the comparative income statement by computing dollar change ($ change) and percentage change (% change).

    © BrainMass Inc. brainmass.com June 4, 2020, 12:31 am ad1c9bdddf
    https://brainmass.com/business/change-management/horizontal-and-vertical-analysis-343961

    Attachments

    Solution Preview

    Following are the income statements for Martha's Miscellaneous for 2008 and 2009
    Martha's Miscellaneous Comparative Statements of Income and Retained Earnings
    2009 2008 $Change %Change
    Sales revenue $700,000 $650,000
    Cost of goods sold 500,000 455,000
    Gross ...

    Solution Summary

    Response helps in computation of Horizontal and Vertical Analysis

    $2.19

    ADVERTISEMENT