59 826 S A Caliber (Body) 6 7 Sales 8 Cost of goods sold (C7-871/C7 Income statements for Burch Company for Year 3 and Year 4 follow. BURCH COMPANY Income Statements 9 Selling expenses 10 Administrative expenses Year 4 BUb $240,000 180,000 26,000 12,000 7,500 225,500 14,500 1,200 $13,300 Year 3 $200,000 124,000 20,000 18,000 8,000 170,000 30,000 D 3,000 $27,000 119 G H 11 Interest expense 12 Total expenses 13 Income before taxes 14 Income taxes expense 15 Net income 16 17 Required 18 a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. 19 b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. 20 Note: Use cell references cell A4 to C15 from the given information to complete this question. For both requirements, round your 21 answers to 1 decimal place. (.e., 0.234 should be entered as 23.4). 22. Wrap

59 826 S A Caliber (Body) 6 7 Sales 8 Cost of goods sold (C7-871/C7 Income statements for Burch Company for Year 3 and Year 4 follow. BURCH COMPANY Income Statements 9 Selling expenses 10 Administrative expenses Year 4 BUb $240,000 180,000 26,000 12,000 7,500 225,500 14,500 1,200 $13,300 Year 3 $200,000 124,000 20,000 18,000 8,000 170,000 30,000 D 3,000 $27,000 119 G H 11 Interest expense 12 Total expenses 13 Income before taxes 14 Income taxes expense 15 Net income 16 17 Required 18 a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. 19 b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. 20 Note: Use cell references cell A4 to C15 from the given information to complete this question. For both requirements, round your 21 answers to 1 decimal place. (.e., 0.234 should be entered as 23.4). 22. Wrap

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 41E: Cost of goods sold and related items The following data were extracted from the accounting records...

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