EX 2-24 Horizontal analysis of income statement
The following data were adapted from the financial statements of Kmart Corporation, prior to its filing for bankruptcy:
|
In millions |
||
|
For years ending January 31 |
2000 |
1999 |
|
Sales |
$37,028 |
$35,925 |
|
Cost of sales (expense) |
-29,658 |
-28,111 |
|
Selling, general, and administrative expenses |
-7,415 |
-6,514 |
|
Operating income (loss) |
($45) |
$1,300 |
a. Prepare a horizontal analysis for the income statement showing the amount and percent of change in each of the following:
1. Sales
2. Cost of sales
3. Selling, general, and administrative expenses
4. Operating income (loss)
b. Comment on the results of your horizontal analysis in part (a).