Data for Kahn, Inc $$\begin{array} { l l l } & 2019 & 2018 \\\text { Net Sales Reverue } & \$ 550,000 & \$ 500,000\end{array}$$

question 160

Essay

Data for Kahn, Inc. follows:
Kahn, Inc.
Comparative Income Statement
Years Ended Dec. 31, 2019 and 2018 $$\begin{array} { l l l } & 2019 & 2018 \\\text { Net Sales Reverue } & \$ 550,000 & \$ 500,000\end{array}$$ Expenses:
$\begin{array}{lll}\text { Cost of Goods Sold } & 245,000 & 220,000 \\\text { Selling and Administrative Expenses } & 100,000 & 96,000 \\\text { Other Expenses (Interest Expense) } & 12,000 & 9,000 \\\text { Income Tax Expense } & \underline{58,000} & \underline{47,000} \\\text { Total Expenses } & \underline{\$ 415,000} &\underline{ \$ 372,000 }\\\text { Net Income } &\underline{ \$ 135,000 }& \underline{\$ 128,000}\end{array}$ Prepare a horizontal analysis of the comparative income statement of Kahn, Inc. (Round to one decimal place.) Use a multi-step format for the income statement.

Distinguish between movements along a curve and shifts of the curve.

Explain how changes in consumer tastes affect demand.

Describe how production costs influence supply.

Understand the impact of industry changes on supply.

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