Question

Exercise 13-06 a-b Here are the comparative income statements of Concord Corporation. CONCORD CORPORATION Comparative Income Statement For the Years Ended December 31 2019 Net sales Cost of goods sold 2020 $636,000 512,616 123,384 79,500 $ 43,884 Gross Profit $530,000 452,620 77,380 43,460 $ 33,920 Operating expenses Net income (a) Prepare a horizontal analysis of the income statement data for Concord Corporation, using 2019 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%.) CONCORD CORPORATION Comparative Income Statement Increase or (Decrease) During 2020 2020 2019 Amount Percentage Net sales $636,000 $530,000 % $ Cost of goods sold 512,616 452,620 % Gross Profit 123,384 77,380 % Operating expenses 79,500 43,460 % Net income $ 43,884 $ 33,920 %

Answer 1

CONCORD CORPORATION
Comparative Income Statements
For the Years Ended December 31
			Increase or (Decrease)
			During 2020
	2020	2019	Amount	Percentage
Net sales	$     636,000	$     530,000	$106,000	20.0%
Cost of goods sold	$     512,616	$     452,620	$ 59,996	13.3%
Gross profit	$     123,384	$       77,380	$ 46,004	59.5%
Operating expenses	$       79,500	$       43,460	$ 36,040	82.9%
Net income	$       43,884	$       33,920	$    9,964	29.4%
CONCORD CORPORATION
Condensed Income Statements
For the Years Ended December 31
	2020		2019
	Amount	Percent	Amount	Percent
Net sales	$     636,000	100.0%	$530,000	100.0%
Cost of goods sold	$     512,616	80.6%	$452,620	85.4%
Gross profit	$     123,384	19.4%	$ 77,380	14.6%
Operating expenses	$       79,500	12.5%	$ 43,460	8.2%
Net income	$       43,884	6.9%	$ 33,920	6.4%

A B с D E 1 CONCORD CORPORATION 2 Comparative Income Statements 3 For the Years Ended December 31 4 Increase or (Decrease) 5 During 2020 6 2020 2019 Amount Percentage 7 Net sales 636000 530000 =B7-C7 =D7/07 8 Cost of goods sold 512616 452620 =B8-C8 =D8/C8 9 Gross profit =B7-18 =C7-C8 =B9-C9 =D9/C9 10 Operating expenses 79500 43460 =B10-C10 =D10/C10 11 Net income =B9-B10 =C9-C10 =B11-C11 =D11/C11 12 13 CONCORD CORPORATION 14 Condensed Income Statements 15 For the Years Ended December 31 16 2020 2019 17 Amount Percent Amount Percent 18 Net sales 636000 =B18/$B$18 530000 =D18/$D$18 19 Cost of goods sold 512616 =B19/$B$18 452620 =D19/$D$18 20 Gross profit =B18-B19 =B20/$B$18 =D18-D19 =D20/$D$18 21 Operating expenses 79500 =B21/$B$18 43460 =D21/$D$18 22 Net income =B20-B21 =B22/$B$18 =D20-D21 =D22/$D$18 าา