Following Is a Comparative Income Statement for Chui Corporation:
$\begin{array} { l r r } & 2017 & 2016 \\\text { Net sales } & \$ 122,000 & \$ 120,000\end{array}$

question 200

Essay

Following is a comparative income statement for Chui Corporation:
Chui Corporation
Comparative Income Statement
For the Years Ended December 31, 2017 and 2016 $\begin{array} { l r r } & 2017 & 2016 \\\text { Net sales } & \$ 122,000 & \$ 120,000\end{array}$ Expenses:
$\begin{array}{lrr}\text { Cost of goods sold } & 62,000 & 57,000 \\\text { Selling and general expenses } & 20,000 & 12,000 \\\text { Interest expense } & 12,000 & 14,000 \\\text { Income tax expense } & 6,000 & 7,000 \\\text { Total expenses }&100,000&90,000\\\text { Net income }&\$22,000&\$30,000\end{array}$ a_Prepare a horizontal analysis of Chui income statement.
b_What positive/negative changes do you see that may have contributed to the $8,000 decrease in net income?

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Definitions:

Performance Goals

Specific targets or objectives set by individuals or teams that aim to measure and achieve desired levels of performance.

Benchmark Partners

Entities or companies with which an organization compares its processes and performance to identify best practices and opportunities for improvement.

Non-financial Measures

Performance indicators that are not based on financial metrics, often used to track efficiency, quality, or customer satisfaction.

Financial Outcomes

The results of financial transactions and events, affecting the financial health and performance of a business or individual over a period.