ACC 560 MART Motivated Minds/acc560mart.com ACC 560 MART Motivated Minds/acc560mart.com | Page 70

For the Years Ended December 31
2017
2016
Net sales
$600,000
$660,000
Cost of goods sold
420,000 483,000
Gross profit
180,000 177,000
Operating expenses
120,000
Net income
$ 60,000
125,000
$ 52,000
Instructions
a.
Prepare a horizontal analysis of the income statement data for
Emley Corporation using 2016 as a base. (Sho w 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.