Acc557 Financial Accounting: E14-13 Horizontal analysis-income statement - Data for Verifine

Acc557 Financial Accounting

E14-13 Horizontal analysis-income statement
Data for Verifine Designs, Inc. follow:
Verifine Designs INC
Comparative Income Statement
Years ended December 31, 2011 and 2010
2011 2010
Net sales revenue 428,950 371,000
Expenses: Cost of goods sold 203,850 189,350
Selling and general expenses 99,350 93,000
Other expense 6,750 5,000
Total expenses 309,950 287,350
Cash and cash equivalents 119,000 83,650

Requirements:
1.Prepare a horizontal analysis of the comparative income statement of Verifine Designs Inc. Round percentage changes to the nearest one-tenth percent (three decimal places)
2.Why did 2011 net income increase by a higher percentage than net sales revenue?
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