The comparative condensed income statements of Hendi Corporation are shown below:

HENDI CORPORATION
Comparative Condensed Income Statements
For the Years Ended December 31

 

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%.)