Accounting Connection- Vision, Inc.'s comparative income statements follow. Compute the amount and percentage changes for the income statements, and comment on the changes from 2013 to 2014. (Round the percentage changes to one decimal place.)
Chapter 14: Financial Statement Analysis
Text Book: Financial and Managerial Accounting By Belverd Needles, Marian Powers, Susan V. Crosson.
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Vision, Inc.
Comparative Income Statements
For the years ended December 31, 2014 and 2013
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2014
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2013
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Net sales
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$360,000
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$290,000
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Cost of goods sold
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224,000
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176,000
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Gross margin
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$136,000
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$114,000
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Operating expenses
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80,000
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60,000
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Operating income
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$ 56,000
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$ 54,000
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Interest expense
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14,000
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10,000
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Income before income taxes
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$ 42,000
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$ 44,000
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Income taxes expense
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14,000
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16,000
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Net income
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$ 28,000
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$ 28,000
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Earnings per share
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$ 2.80
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$ 2.80
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