Question

Hooser Corp. reported the following on its comparative income statement: (Click the icon to view the data. Prepare a horizontal analysis of revenues and gross profit—both in dollar amounts and in percentages—for 2019 and 2018. Begin by calculating the gross profit for each year, then prepare a horizontal analysis of revenues and gross profit—both in dollar amounts and in percentages—for 2019 and 2018. (Enter amounts in millions as provided to you in the problem statement. Round the percentages to one decimal place, X.X%. Use a minus sign or parentheses to indicate a decrease.) Hooser Corp. Income Statement - (Partial) Years Ended December 31, 2019 and 2018 2019 2018 2017 Data Table $ (Amounts in millions) Revenues Cost of Goods Sold Gross Profit 9,675 S 6,120 9.460 $ 5.900 9,125 5,675 (In millions) 2018 2017 Revenue S 2019 9,675 S 6,120 9,460 $ 9,125 Cost of Goods Sold 5.900 5,675 Print Done

Answer 1

Hooser Inc.

Income statement-(Partial)

Years Ended December 31, 2019 and 2018

(Amounts in millions)	2019($)	2018($)	2017($)
Revenues	9,675	9,460	9,125
Cost of goods sold	6,120	5,900	5,675
Gross profit	3,555	3,560	3,450

Horizontal analysis of revenues and gross profit:

Increase(Decrease)
	2019	2018
Amount in millions	Amount($)	%	Amount($)	%
Revenues	215	2.27%	335	3.67%
Gross profit	(5)	(0.14%)	110	3.19%

Working notes

1. Revenues

2018:

=(9,460 - 9,125)/9,125

= 335/9,125

= 3.67%

2019:

=(9,675 - 9,460)/9,675

= 215/9,460

= 2.27%

2. Gross profit:

2018:

= 3,560 - 3,450)/3,450

= 110/3,450

=3.19%

2019:

=(3,555 - 3,560)/3,560

=(5)/3,560

= (0.14%)