Question

ED-15 Performing horizontal anaylysis- income statement

Data for McCormick Deisngs, Inc. follow:

Income Statement

Requirements:

1. Prepard a horizontal analysis of the comparative income statement of McCormick Designs, Inc. Round percentage changes to one decimal place.

2. Why did 2016 net income increase by a higher percentage than net sales revenue?

*hint: 1. Net income 35.7%

Please list the step by step process, thank you

 

2016

2015

Net Sales Revenue

$431,250

$373.000

Expenses:

 

 

Cost of Goods Sold

202,000

189,000

Selling and Administrative Expenses

100,050

92,550

Other Expenses

8,000

2,150

Total Expenses

310,050

283,700

Net Income

$121,200

$89,300

 

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