Question

Here are the comparative income statements of Blossom Corporation.

BLOSSOM CORPORATION Comparative Income Statement For the Years Ended December 31
		2022		2021
Net sales		$632,600		$521,900
Cost of goods sold		463,600		410,400
Gross Profit		169,000		111,500
Operating expenses		79,300		47,200
Net income		$ 89,700		$ 64,300

(a)

Prepare a horizontal analysis of the income statement data for Blossom Corporation, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)

BLOSSOM CORPORATION Comparative Income Statement choose the accounting periodDecember 31For the Years Ended December 31For the Month Ended December 31 For the Years Ended December 31For the Month Ended December 31December 31
					Increase or (Decrease) During 2022
	2022		2021		Amount		Percentage
Net sales	$632,600		$521,900		$enter a dollar amount		enter percentages rounded to 1 decimal place	%
Cost of goods sold	463,600		410,400		enter a dollar amount		enter percentages rounded to 1 decimal place	%
Gross Profit	169,000		111,500		enter a dollar amount		enter percentages rounded to 1 decimal place	%
Operating expenses	79,300		47,200		enter a dollar amount		enter percentages rounded to 1 decimal place	%
Net income	$ 89,700		$ 64,300		$enter a dollar amount		enter percentages rounded to 1 decimal place	%

(b)

Prepare a vertical analysis of the income statement data for Blossom Corporation for both years. (Round percentages to 1 decimal place, e.g. 12.1%.)

BLOSSOM CORPORATION Condensed Income Statements choose the accounting periodFor the Years Ended December 31December 31For the Month Ended December 31 For the Years Ended December 31For the Month Ended December 31December 31
	2022					2021
	$		Percent			$		Percent
Net sales	$632,600		enter percentages rounded to 1 decimal place	%		$521,900		enter percentages rounded to 1 decimal place	%
Cost of goods sold	463,600		enter percentages rounded to 1 decimal place	%		410,400		enter percentages rounded to 1 decimal place	%
Gross Profit	169,000		enter percentages rounded to 1 decimal place	%		111,500		enter percentages rounded to 1 decimal place	%
Operating expenses	79,300		enter percentages rounded to 1 decimal place	%		47,200		enter percentages rounded to 1 decimal place	%
Net income	$ 89,700		enter percentages rounded to 1 decimal place	%		$ 64,300		enter percentages rounded to 1 decimal place

Answer 1

BLOSSOM CORPORATION Comparative Income statement For the year ended December 31 Increase or (decrease) during 2022 2022 2021 Amount Percentage Net Sales $632.600 $521,900S 110.700 21.2% Cost of goods sold $463,600 $410,400 S 53,200 13.0% Gross Profit $ 169,000 $111,500S 57,500 51.6% Operating Expenses $ 79,300 $ 47,200 S 32,100 68.0% Net income S 89,700 $ 64,300 $ 25,400 39.5% (6) BLOSSOM CORPORATION Condensed income Statement For the year ended December 31 2022 2022 2021 S Percent S Net Sales $632,600 100.0% S 521.900 Cost of goods sold $463,600 73.3% $ 410.400 Gross Profit $169,000 26.7% S 111,500 Operating Expenses $ 79,300 12.5% 47,200 Net income S 89,700 14.2% S 64,300 Percent 100.0% 78.6% 21.4% 9.0% 12.3%