Raymond, Inc. a manufacturer of piping for the plumbing industry, had the following financial performance for the last two years as shown on their income statements below: Raymond, Inc. Comparative Income Statement For the Years Ended December 31, 2021 and 2020 2021 2020 Amount Amount Sales $910,000 $700,000 Cost of goods sold 475,000 350,000 Gross profit 435,000 350,000 Selling expenses 146,500 115,000 Administrative expenses 99,500 85,000 Total operating expenses 246,000 200,000 Income from operations 189,000 150,000 Other income 65,000 50,000 Income before income tax 254,000 200,000 Income tax expense 63,000 50,000 Net income $191,000 $150,000 1. Prepare a horizontal analysis using the form provided to the right. 2. What line item jumps off the page as the most negative change year to year considering the sales growth? 3. What line item jumps off the page as the most positive change year to year considering the sales growth?
Raymond, Inc. a manufacturer of piping for the plumbing industry, had the following financial performance for the last two years as shown on their income statements below: Raymond, Inc. Comparative Income Statement For the Years Ended December 31, 2021 and 2020 2021 2020 Amount Amount Sales $910,000 $700,000 Cost of goods sold 475,000 350,000 Gross profit 435,000 350,000 Selling expenses 146,500 115,000 Administrative expenses 99,500 85,000 Total operating expenses 246,000 200,000 Income from operations 189,000 150,000 Other income 65,000 50,000 Income before income tax 254,000 200,000 Income tax expense 63,000 50,000 Net income $191,000 $150,000 1. Prepare a horizontal analysis using the form provided to the right. 2. What line item jumps off the page as the most negative change year to year considering the sales growth? 3. What line item jumps off the page as the most positive change year to year considering the sales growth?
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 6EA: During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of...
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Raymond, Inc. a manufacturer of piping for the plumbing industry, had the following | |||||||
financial performance for the last two years as shown on their income statements below: | |||||||
Raymond, Inc. | |||||||
Comparative Income Statement | |||||||
For the Years Ended December 31, 2021 and 2020 | |||||||
2021 | 2020 | ||||||
Amount | Amount | ||||||
Sales | $910,000 | $700,000 | |||||
Cost of goods sold | 475,000 | 350,000 | |||||
Gross profit | 435,000 | 350,000 | |||||
Selling expenses | 146,500 | 115,000 | |||||
Administrative expenses | 99,500 | 85,000 | |||||
Total operating expenses | 246,000 | 200,000 | |||||
Income from operations | 189,000 | 150,000 | |||||
Other income | 65,000 | 50,000 | |||||
Income before income tax | 254,000 | 200,000 | |||||
Income tax expense | 63,000 | 50,000 | |||||
Net income | $191,000 | $150,000 | |||||
1. Prepare a horizontal analysis using the form provided to the right. | |||||||
2. What line item jumps off the page as the most negative change year to year | |||||||
considering the sales growth? | |||||||
3. What line item jumps off the page as the most positive change year to year | |||||||
considering the sales growth? | |||||||
|
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