Question

Here are the comparative income statements of Delaney Corporation. Delaney Corporation Comparative Income Statements For the Years Ended December 31 2020 2019 Net sales $611,000 $506,000 Cost of goods sold 487,578 424,028 Gross profit 123,422 81,972 Operating expenses 86,762 48,576 Net income $ 36,660 $ 33,396 (a) Prepare a horizontal analysis of the income statement data for Delaney Corporation, using 2019 as a base. (Show the amounts of increase or decrease.) (Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.) DELANEY CORPORATION Condensed Income Statements Increase or (Decrease) During 2020 2020 2019 Amount Percentage Net sales $611,000 $506,000 $ % Cost of goods sold 487,578 424,028 % Gross profit 123,422 81,972 % Operating expenses 86,762 48,576 % Net income $36,660 $33,396 $ % (b) Prepare a vertical analysis of the income statement data for Delaney Corporation for both years. (Round percentages to 1 decimal place, e.g. 12.3%.) DELANEY CORPORATION Condensed Income Statements 2020 2019 Amount Percent Amount Percent Net sales $611,000 % $506,000 % Cost of goods sold 487,578 % 424,028 % Gross profit 123,422 % 81,972 % Operating expenses 86,762 % 48,576 % Net income $ 36,660 % $ 33,396 % Click if you would like to Show Work for this question: Open Show Work

Answer 1

1.

Delaney Corporation Condensed Income Statement
			Increase or (Decrease)
	2020	2019	Amount	Percentage
Net sales	$611,000	$506,000	$105,000	20.8%
Cost of goods sold	487,578	424,028	63,550	15%
Gross profit	123,422	81,972	41,450	50.6%
Operating expenses	86,762	48,576	38,186	78.6%
Net income	$36,660	$33,396	$3,264	9.8%

2.

Delaney Corporation Condensed Income Statement
	2020		2019
	Amount	Percentage	Amount	Percentage
Net sales	$611,000	100%	$506,000	100%
Cost of goods sold	487,578	79.8%	424,028	83.8%
Gross profit	123,422	20.2%	81,972	16.2%
Operating expenses	86,762	14.2%	48,576	9.6%
Net income	$36,660	6%	$33,396	6.6%