Reference no: EM132378611
Question
Here are the comparative income statements of Delaney Corporation.
Delaney Corporation
Comparative Income Statements
For the Years Ended December 31
2020 2019
Net sales
$643,000 $530,000
Cost of goods sold 506,041 440,960
Gross profit 136,959 89,040
Operating expenses 89,377 50,350
Net income $ 47,582 $ 38,690
(a) Show a horizontal analysis of the income statement data for Delaney Corporation, using 2019 as a base. (Show the amounts of increase or decrease.) (Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.)
DELANEY CORPORATION
Condensed Income Statements
Increase or (Decrease)
During 2020
2020 2019
Amount
Percentage
Net sales
$643,000
$530,000
$
%
Cost of goods sold 506,041 440,960 %
Gross profit 136,959 89,040 %
Operating expenses 89,377 50,350 %
Net income $47,582 $38,690
(b) Show a vertical analysis of the income statement data for Delaney Corporation for both years. (Round percentages to 1 decimal place, e.g. 12.3%.)
DELANEY CORPORATION
Condensed Income Statements
2020 2019
Amount
Percent
Net sales $643,000 $530,000
Cost of goods sold 506,041 % 440,960 %
Gross profit 136,959 % 89,040%
Operating expenses 89,377% 50,350%
Net income $ 47,582 $ 38,690