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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.

    © 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

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    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

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