Income statements for sennett company for 2008 and 2009

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Income statements for Sennett Company for 2008 and 2009 follow.


2009

2008

Sales

$121,000

$92,000

Cost of goods sold

75,000

51,000

Selling expenses

20,000

11,000

Administrative expenses

12,000

14,000

Interest expense

3,000

5,000

Total expenses

110,000

81,000

Income before taxes

11,000

11,000

Income taxes expense

3,000

2,000

Net income

$ 8,000

$ 9,000

Required

a. Perform a horizontal analysis, showing the percentage change in each income statement component between 2008 and 2009.

b. Perform a vertical analysis, showing each income statement component as a percent of sales for each year.

Reference no: EM13574778

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