Here are the comparative income statements of Winfrey Corporation.
|
WINFREY CORPORATION |
||
|
2010 |
2009 |
|
|
Net sales |
$598,000 |
$520,000 |
|
Cost of goods sold |
477,000 |
450,000 |
|
Gross profit |
$121,000 |
$ 70,000 |
|
Operating expenses |
80,000 |
45,000 |
|
Net income |
$ 41,000 |
$ 25,000 |
Instructions
(a) Prepare a horizontal analysis of the income statement data for Winfrey Corporation using 2009 as a base. (Show the amounts of increase or decrease.)
(b) Prepare a vertical analysis of the income statement data for Winfrey Corporation for both years.