Question

Here are the comparative income statements of Wildhorse Corporation.

WILDHORSE CORPORATION Comparative Income Statement For the Years Ended December 31
		2022		2021
Net sales		$637,600		$522,500
Cost of goods sold		461,400		400,800
Gross Profit		176,200		121,700
Operating expenses		79,200		43,600
Net income		$ 97,000		$ 78,100

(a)

Prepare a horizontal analysis of the income statement data for Wildhorse Corporation, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)

WILDHORSE CORPORATION Comparative Income Statement choose the accounting period                                                           For the Years Ended December 31For the Month Ended December 31December 31
					Increase or (Decrease) During 2022
	2022		2021		Amount		Percentage
Net sales	$637,600		$522,500		$enter a dollar amount		enter percentages rounded to 1 decimal place	%
Cost of goods sold	461,400		400,800		enter a dollar amount		enter percentages rounded to 1 decimal place	%
Gross Profit	176,200		121,700		enter a dollar amount		enter percentages rounded to 1 decimal place	%
Operating expenses	79,200		43,600		enter a dollar amount		enter percentages rounded to 1 decimal place	%
Net income	$ 97,000		$ 78,100		$enter a dollar amount		enter percentages rounded to 1 decimal place	%

(b)

Prepare a vertical analysis of the income statement data for Wildhorse Corporation for both years. (Round percentages to 1 decimal place, e.g. 12.1%.)

WILDHORSE CORPORATION Condensed Income Statements choose the accounting period                                                           For the Years Ended December 31For the Month Ended December 31December 31
	2022					2021
	$		Percent			$		Percent
Net sales	$637,600		enter percentages rounded to 1 decimal place	%		$522,500		enter percentages rounded to 1 decimal place	%
Cost of goods sold	461,400		enter percentages rounded to 1 decimal place	%		400,800		enter percentages rounded to 1 decimal place	%
Gross Profit	176,200		enter percentages rounded to 1 decimal place	%		121,700		enter percentages rounded to 1 decimal place	%
Operating expenses	79,200		enter percentages rounded to 1 decimal place	%		43,600		enter percentages rounded to 1 decimal place	%
Net income	$ 97,000		enter percentages rounded to 1 decimal place	%		$ 78,100		enter percentages rounded to 1 decimal place	%

Answer 1

WILDHORSE CORPORATION
Comparative income statement
For the year ended December 31, 2022, and 2021
			Increase or (decrease) during 2022
	2022	2021	Amount	Percentage
Sales	$ 637,600	$ 522,500	$ 115,100	22.0%
Cost of goods sold	$ 461,400	$ 400,800	$ 60,600	15.1%
Gross profit	$ 176,200	$ 121,700	$ 54,500	44.8%
Operating expense	$ 79,200	$ 43,600	$ 35,600	81.7%
Net income	$ 97,000	$ 78,100	$ 18,900	24.2%

.

WILDHORSE CORPORATION
Comparative income statement
For the year ended December 31, 2022, and 2021
	2022		2021
	$	%	$	%
Sales	$ 637,600	100.0%	$ 522,500	100.0%
Cost of goods sold	$ 461,400	72.4%	$ 400,800	76.7%
Gross profit	$ 176,200	27.6%	$ 121,700	23.3%
Operating expense	$ 79,200	12.4%	$ 43,600	8.3%
Net income	$ 97,000	15.2%	$ 78,100	14.9%