Data for Kalil, Inc follows

Question

Kalil, Inc
Comparative Income Statement
Years Ended Dec. 31, 2017 and 2016

2017 2016
Net Sales Revenue $550,000 $500,000
Expenses:
Cost of Goods Sold 245,000 220,000
Selling and Administrative Expenses 100,000 96,000
Other Expenses (Interest Expense) 12,000 9,000
Income Tax Expense 58,000 47,000
Total Expenses $415,000 $372,000
Net Income $135,000 $128,000

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.
What will be an ideal response

Answer 1

Comparative Income Statement—Horizontal Analysis

Kalil, Inc.
Comparative Income Statement
Years Ended Dec 31, 2017 and 2016
Increase (Decrease)
2017 2016 Amount Percentage
Net Sales $550,000 $500,000 $50,000 10.0
Cost of Goods Sold 245,000 220,000 25,000 11.4
Gross Profit 305,000 280,000 25,000 8.9
Operating Expenses:
Selling and Administrative expenses 100,000 96,000 4,000 4.2
Operating Income 205,000 184,000 21,000 11.4
Other Revenues and (Expenses):
Interest Expense (12,000 ) (9,000 ) (3,000 ) 33.3
Total Other Revenues and (Expenses) (12,000 ) (9,000 ) (3,000 ) 33.3
Income Before Income Taxes 193,000 175,000 18,000 10.3
Income Tax Expense 58,000 47,000 11,000 23.4
Net Income $135,000 $128,000 $7,000 5.5