Perform a Horizontal Analysis of the Following Company's Income Statement

question 133

Essay

Perform a horizontal analysis of the following company's income statement. Include both the amount and the percentage of change for each account.
$$\begin{array} { | l | r | r | r | l | } \hline \text { Account } & \mathbf { 2 0 1 1 } & \mathbf { 2 0 1 0 } & \text { Change Amount } & \text { Change Percent } \\\hline \text { Net sales revenue } & \$ 557,000 & \$ 500,000 & & \\\hline \text { Cost of goods sold } & 400,000 & 395,000 & \\\hline \text { Gross profit } & 157,000 & 105,000 & & \\\hline \text { Selling and general expenses } & 70,000 & 50,000 & \\\hline \text { Net income before income tax } & 87,000 & 55,000 & \\\hline \text { Income tax expense } & 24,000 & 16,500 & \\\hline \text { Net income } & \$ 63,000 & \$ 38,500 & & \\\hline\end{array}$$

---

Definitions:

Brand Awareness

The extent to which consumers recognize and are familiar with a brand and its products or services.

Increasing Depth

Enhancing the range or complexity of a topic, product line, or area of knowledge to provide more detail or options.

Colored Shoe Laces

are shoe laces available in various colors, often used to personalize footwear or match them with outfits, enhancing their aesthetic appeal.

Brand's Value

The perceived worth of a brand in the eyes of consumers, often reflected in brand recognition, loyalty, and the ability to command higher prices.