Acc561 Introduction to Management Accounting: E13-6 comparative income statements of Winfrey

Acc561 Introduction to Management Accounting
E13-6
Here are the comparative income statements of Winfrey Corporation.
WINFREY CORPORATION
Comparative Income Statements
For the Years Ended December 31
2010 2009
Net sales 598,000 520,000
Cost of goods sold 477,000 450,000
Gross profit 121,000 70,000
Operating expenses 80,000 45,000
Net income $41,000 $25,000

Instructions:
a. Complete the horizontal analysis of the income statement data for Winfrey Corporation using 2009 as a base. (Round all percentages to 1 decimal place, e.g. 12.5.)
b. Complete the vertical analysis of the income statement data for Winfrey Corporation for both years. (Round all percentages to 1 decimal place, e.g. 12.5.)
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