Question

Carolina Products
Income Statement
Years Ended 12/31/2016 & 12/31/2015
			Horizontal Analysis
	2016	2015	$ Change	% Change
Sales	$272,500	$270,010
Cost of Goods Sold	$157,472	$154,589
Gross Profit	$115,028	$115,421
Operating Expenses:
Selling Expense	$49,675	$48,500
Salary Expense	$30,000	$28,000
Administrative Expense	$15,500	$15,400
Advertising Expense	$3,400	$3,200
Utilities Exp	$1,100	$1,000
Depreciation Exp	$1,620	$1,450
Total Operating Expenses	$101,295	$97,550
Net Income	$13,733	$17,871

Answer 1

Solution

Carolina Products
Income Statement
Years Ended 12/31/2016 & 12/31/2015
			Horizontal Analysis
	2016	2015	$ Change	% Change
Sales	$272,500.00	$270,010.00	$ 2,490.00	0.9%
Cost of Goods Sold	$157,472.00	$154,589.00	$ 2,883.00	1.9%
Gross Profit	$115,028.00	$115,421.00	$   (393.00)	-0.3%
Operating Expenses:
Selling Expense	$ 49,675.00	$ 48,500.00	$ 1,175.00	2.4%
Salary Expense	$ 30,000.00	$ 28,000.00	$ 2,000.00	7.1%
Administrative Expense	$ 15,500.00	$ 15,400.00	$    100.00	0.6%
Advertising Expense	$    3,400.00	$    3,200.00	$    200.00	6.3%
Utilities Exp	$    1,100.00	$    1,000.00	$    100.00	10.0%
Depreciation Exp	$    1,620.00	$    1,450.00	$    170.00	11.7%
Total Operating Expenses	$101,295.00	$ 97,550.00	$ 3,745.00	3.8%
Net Income	$ 13,733.00	$ 17,871.00	$(4,138.00)	-23.2%

Alternate answer with percentage in 2 decimal place

Carolina Products
Income Statement
Years Ended 12/31/2016 & 12/31/2015
			Horizontal Analysis
	2016	2015	$ Change	% Change
Sales	$272,500.00	$270,010.00	$ 2,490.00	0.92%
Cost of Goods Sold	$157,472.00	$154,589.00	$ 2,883.00	1.86%
Gross Profit	$115,028.00	$115,421.00	$   (393.00)	-0.34%
Operating Expenses:
Selling Expense	$ 49,675.00	$ 48,500.00	$ 1,175.00	2.42%
Salary Expense	$ 30,000.00	$ 28,000.00	$ 2,000.00	7.14%
Administrative Expense	$ 15,500.00	$ 15,400.00	$    100.00	0.65%
Advertising Expense	$    3,400.00	$    3,200.00	$    200.00	6.25%
Utilities Exp	$    1,100.00	$    1,000.00	$    100.00	10.00%
Depreciation Exp	$    1,620.00	$    1,450.00	$    170.00	11.72%
Total Operating Expenses	$101,295.00	$ 97,550.00	$ 3,745.00	3.84%
Net Income	$ 13,733.00	$ 17,871.00	$(4,138.00)	-23.15%