The comparative income statements of Accra Pies are shown below.
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ACCRA PIES
Comparative Income Statements
For the Years Ended December 31
|
| |
2009
|
2008
|
|
Net sales
|
$600,000
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$500,000
|
|
Cost of goods sold
|
480,000
|
420,000
|
|
Gross profit
|
120,000
|
80,000
|
|
Operating expenses
|
57,200
|
44,000
|
|
Net income
|
$62,800
|
$36,000
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Instructions
(a) Prepare a horizontal analysis of the income statement data for Accra using 2008 as a base. (Show the amounts of increase or decrease.)
(b) Prepare a vertical analysis of the income statement data for Accra in columnar form for both years.