Question

1. Complete the "Amount" and "%" columns to be used in a horizontal analysis of the income statements for Anything Tennis. (Decreases should be indicated by a minus sign. Round your percentage answers to 1 decimal place.) Net sales Cost of goods sold Gross profit Operating expenses Operating income Other income (expense) Income before tax Income tax expense Net income Answer is complete but not entirely correct. ANYTHING TENNIS Income Statements For the Years Ended December 31 Increase (Decrease) 2021 2020 Amount % $ 3,380,000 $ 2,540,000 $ 840.000 33.1 2,110,000 1,360,000 750,000 552 1,270,000 1,180,000 90,000 76 790,000 614,000 176,000 28.7 480,000 566,000 (86,000) 84.8 9,200 5,600 3,600 64.3 489,200 571,600 (82,400) 85.6% 98,000 136,000 (38,000) (72.1) $ 391,200 $ 435,600 $ (44,400) (89.8) ► .

Answer 1

Answer-

ANYTHING TENNIS
HORIZONTAL ANALYSIS
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31
PARTICULARS	2021	2020	Difference	%
	$	$	$
Sales	3380000	2540000	840000	33.1
Less-Cost of good sold	2110000	1360000	750000	55.1
Gross profit	1270000	1180000	90000	7.6
Less- Operating expenses	790000	614000	176000	28.7
Operating income/(loss)	480000	566000	-86000	-15.2
Other income (Expenses)	9200	5600	3600	64.3
Income before taxes	489200	571600	-82400	-14.4
Less- Income tax expense	98000	136000	-38000	-27.9
Net Income	391200	435600	-44400	-10.2