Reference no: EM131630067
Question - The comparative condensed income statement of Emley Corporation are shows below.
Emley Corporation Comparative Condensed Income Statements for the years Ended December 31 2017 2016
Net Sales $660,000 $600,000
Cost of goods sold 483,000 420,000
Gross profit 177,000 180,000
Operating expenses 125,000 120,000
Net Income $ 52,000 $60,000
Instructions
(a) Prepare a horizontal analysis of the income statement data for Emley Corporation using 2016 as a base. (Show the amount of increase or decrease).
(b) Prepare a vertical analysis of the income statement data for Emley Corporation in columnar form for both years.