Income statements for Walton Company for Year 3 and Year 4 follow: WALTON COMPANY Income Statements Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income Year 4 $201,000 143,700 21,900 13,000 3,700 Year 3 $181,000 121,700 19,900 15,000 5,700 $182,300 $162,300 18,700 18,700 6,200 3,200 $ 12,500 $ 15,500 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.
Income statements for Walton Company for Year 3 and Year 4 follow: WALTON COMPANY Income Statements Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income Year 4 $201,000 143,700 21,900 13,000 3,700 Year 3 $181,000 121,700 19,900 15,000 5,700 $182,300 $162,300 18,700 18,700 6,200 3,200 $ 12,500 $ 15,500 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.
College Accounting (Book Only): A Career Approach
12th Edition
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Author:Cathy J. Scott
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Chapter12: Financial Statements, Closing Entries, And Reversing Entries
Section: Chapter Questions
Problem 3E
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Ashvin
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![Income statements for Walton Company for Year 3 and Year 4 follow:
WALTON COMPANY
Income Statements
Sales
Cost of goods sold.
Selling expenses
Administrative expenses
Interest expense
Total expenses
Income before taxes
Income taxes expense
Net income
Year 4
$201,000
143,700
21,900
13,000
3,700
$182,300
18,700
6,200
$ 12,500
Year 3
$181,000
121,700
19,900
15,000
5,700
$162,300
18,700
3,200
$ 15,500
Required
a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4.
b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb93466fc-9139-4799-9790-6a589f14492b%2Fa7cf318b-8bf8-4150-829c-3784b6ae8654%2Fd5r1eot_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Income statements for Walton Company for Year 3 and Year 4 follow:
WALTON COMPANY
Income Statements
Sales
Cost of goods sold.
Selling expenses
Administrative expenses
Interest expense
Total expenses
Income before taxes
Income taxes expense
Net income
Year 4
$201,000
143,700
21,900
13,000
3,700
$182,300
18,700
6,200
$ 12,500
Year 3
$181,000
121,700
19,900
15,000
5,700
$162,300
18,700
3,200
$ 15,500
Required
a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4.
b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.
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