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Common size financial statements and percentage change

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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.

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Solution Summary

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

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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 $ ...

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