Here are the comparative income statements of Blevins Corporation.
|
BLEVINS CORPORATION |
||
|
2012 |
2011 |
|
|
Net sales |
$598,000 |
$500,000 |
|
Cost of goods sold |
477,000 |
420,000 |
|
Gross profit |
$121,000 |
$ 80,000 |
|
Operating expenses |
80,000 |
44,000 |
|
Net income |
$ 41,000 |
$ 36,000 |
Instructions
(a) Prepare a horizontal analysis of the income statement data for Blevins Corporation, using 2011 as a base. (Show the amounts of increase or decrease.)
(b) Prepare a vertical analysis of the income statement data for Blevins Corporation for both years.