The comparative condensed income statements of Hendi Corporation are shown below:
|
HENDI CORPORATION |
||
|
|
2014 |
2013 |
|
Net sales |
600,000 |
500,000 |
|
Cost of goods sold |
468,000 |
400,000 |
|
Gross profit |
132,000 |
100,000 |
|
Operating expenses |
60,000 |
54,000 |
|
Net income |
72,000 |
46,000 |
Instructions:
(a) Prepare a horizontal analysis of the income statement data for Hendi Corporation using 2013 as a base. (Show the amounts of increase or decrease.) (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000). (20%). Round percentages to 1 decimal place, e.g. 12.3%.)
(b) Prepare a vertical analysis of the income statement data for Hendi Corporation in columnar form for both years. (Round percentages to 1 decimal place, e.g. 12.3%.)