Share
Explore BrainMass

Comparative Income Statement - Erik Corporation

Here are the comparative income statements of Erik Corporation.

Erik Corporation
Comparative Income Statements
For the years ended December 31

2007 2008

Net Sales $572,000 $520,000
Cost of goods sold 477,000 450,000

Gross Profit 95,000 70,000
Operating Expenses 60,000 45,000

Net Income 35,000 25,000

(see attachment for better formatting of the tables)

A) Prepare a horizontal analysis of the income statement data for Erik Corporation using 2006 as a base (show the amounts of increase or decrease).

B) Prepare a vertical analysis of the income statement data for Erik Corporation for both years.

Attachments

Solution Summary

Excel spreadsheet shows how to carry out a horizontal and vertical analysis of an income statement.

$2.19