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