Explore BrainMass
Share

Explore BrainMass

    Comparative Income Statement - Erik Corporation

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

    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.

    © BrainMass Inc. brainmass.com October 9, 2019, 8:57 pm ad1c9bdddf
    https://brainmass.com/psychology/erik-eriksons-stages-of-psychosocial-development/comparative-income-statement-erik-corporation-168196

    Attachments

    Solution Summary

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

    $2.19