For the Years Ended December 31
2016
2017
Net sales $ 660,000 $ 600,000
Cost of goods sold 483,000 420,000
Gross profit 177,000 180,000
Operating expenses 125,000 120,000
Net income $ 52,000 $ 60,000
Instructions
a. Prepare a horizontal analysis of the income statement data for Emley Corporation using 2016 as a base.( Show the amounts of increase or decrease.
b. Prepare a vertical analysis of the income statement data for Emley Corporation in columnar form for both years.
E14-7 Frizell Company has the following comparative balance sheet data.