Explore BrainMass

Common size financial statements and percentage change

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

See the attached file.

What was the percentage increase or decrease in income tax expense from 2014 to 2015?

Q 1: Calculate the percentage change in three financial statement items.
Q 2: Perform horizontal analysis by creating a common-size financial statement.

© BrainMass Inc. brainmass.com June 4, 2020, 4:42 am ad1c9bdddf
https://brainmass.com/business/financial-accounting-bookkeeping/common-size-financial-statements-percentage-change-576402

Solution Preview

Please see the attachment for the solution.

QUESTION 1:
The following data on Graphic View, Inc. is available.

Graphic View, Inc.
Comparative Income Statement
For the Years Ended December 31, 2015 and December 31, 2014

2015 2014
Net Sales \$965,400 \$1,028,600
Cost of Goods Sold 515,100 590,300
Gross Profit \$450,300 \$ 438,300
Operating Expenses:
Selling \$142,000 \$173,400
Administrative 150,200 182,400
Interest 29,300 34,100
Total Operating Expenses \$321,500 \$389,900
Income Tax Expense 45,500 18,200
Total Expenses \$367,000 \$ 408,100
Net Income \$ 83,300 \$ 30,200

Graphic View, Inc.
Comparative Balance Sheet
December 31, 2015 and December 31, 2014

2015 2014
Assets:
Cash \$ ...

Solution Summary

This solution answers questions regarding percentage change in financial statements and helps perform a horizontal analysis.

\$2.19