Data for Kalil,Inc $$\begin{array} { l l l } & 2017 & 2016 \\\text { Net Sales Revenue } & \$ 550,000 & \$ 500,000\end{array}$$

question 139

Essay

Data for Kalil,Inc.follows:
Kalil, Inc.
Comparative Income Statement
Years Ended Dec. 31, 2017 and 2016 $$\begin{array} { l l l } & 2017 & 2016 \\\text { Net Sales Revenue } & \$ 550,000 & \$ 500,000\end{array}$$ Expenses:
$\begin{array}{lll}\text { Cost of Goods Sold } & 245,000 & 220,000 \\\text { Selling and Administrative Expenses } & 100,000 & 96,000 \\\text { Other Expenses (Interest Expense) } & 12,000 & 9,000 \\\text { Income Tax Expense } & \underline{58,000} & \underline{47,000} \\\text { Total Expenses } & \underline{\$ 415,000} & \underline{\$ 372,000} \\\text { Net Income } & \$ 135,000 & \$ 128,000\end{array}$
Prepare a horizontal analysis of the comparative income statement of Kalil,Inc.(Round to one decimal place. )Use a multi-step format for the income statement.

---

Definitions:

U.S. Business

Refers to commercial, industrial, or professional activities conducted within the United States aimed at generating profit or economic growth.

Long-Run Supply Curve

A graphical representation that shows how the quantity supplied of a good changes in response to a price change once producers have had enough time to adjust their production decisions fully.

Constant-Cost Industry

An industry in which costs of production do not change as the industry's output changes.

Decreasing-Cost Industry

An industry where the costs of production decrease as the industry grows and output increases, due to factors such as economies of scale.