Using the Following Income Statements for Conduit Corporation for the Years

question 48

Essay

Using the following income statements for Conduit Corporation for the years ended December 31,2010 and 2009,prepare a horizontal analysis showing both dollar amounts and percentages:
Condun Corporation
Comparative Income Statements
For the Years Ended Decermber 31, 2010 ard 2009
$\begin{array} { l l l } \text { Net sales } & \frac { 2010 } { \$ 145,000 } & \$ \frac { 2009 } { \$ 131,000 } \\ \text { Cost of goods sold } & \frac { 63,000 } { 65,000 } & \frac { 66 } { \mathbf { 8 2 , 0 0 0 } } \end{array}$
Operating expenses:
$\begin{array} { l r r } \text { Selling expenses } & 29,000 & 26,000 \\ \text { General ard adruiristrative } & & \\ \text { Expenses } & \frac { 17,000 } { 14,000 } & \frac { 17,00 } { \$ 25,000 } \\ \text { Operatirg income } & \$ 36,000 & \$ 2,000 \end{array}$

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Definitions:

Confederal System

A form of government where power is distributed among several independent states, which retain full control over their internal affairs but cooperate on certain issues.

Central Government

The national government of a sovereign state that holds the authority to govern the country as a whole.

Real Power

The actual ability or capacity to act, make decisions, and enforce control, often different from the perceived or official authority.

Supreme Court

is the highest court in various countries, responsible for interpreting the constitution and laws, and its decisions serve as precedents in all courts of the nation.