Question

Help please,

Workshop 5 Problems Student Q Search Sheet Data Review View OBOU Home Insert Page Layout Formulas Calibri (Body) - 12 - A Paste B IU $ 112 x ✓ for 2 E Wrap Text A A A General $ - % I 28 Insert * Delete Format * Merge & Center ) Conditional Formet Formatting as Table Cell Styles 2. Sort & Filter L M N O P Q R 2 Concept - Comparing performance of various components of a business unit with the past. 3 Use the table to the right to assist in the calculation of the % change 5 Directions: Perform a Horizontal Analysis of the income statements based on the information provided below Change in 2018 compared to 2017 150,000 % Change 75.0% $ Daffy and Friends Income Statement 2018 11 Sales $ 350,000 12 Cost of Goods Sold 200,000 13 Selling Expenses 35,000 14 Administrative Expenses 22,000 15 Interest Expense 8,500 16 Total Expenses 265,500 17 Income Before Taxes 84,500 18 Income Tax Expense 3,000 19 Net Income 81.500 2017 200,000 124,000 20,000 18.000 8,000 170,000 30,000 3,000 27.000 Daffy and Friends Horizontal Analysis of Income Statements Percent Change Over 2018 26 Sales 75% 27 Cost of Goods Sold 28 Selling Expense 29 Administrative Expenses 30 Interest Expense 31 Total Expense 32 Income Before Taxes 33 Income Taxes Expense 34 Net Income loss) Problem 5.1 Problem 5.2 Problem 5.3 Problem 5.4 Problem 5.5 Problem 5.6 + Ready B - - + 100%

Answer 1

Horizontal percentage change for period = [(Analysis period amount - Prior period amount)]  $\div$ prior period amount

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в C D 11 Sales 12 Cost of goods sold 13 Selling Expenses 14 Administrative expenses 15 Interest expense 16 Total Expenses 17 Income before taxes 18 Income tax Expenses 19 Net income Daffy and friends Income statement 2018 $350.000 $200,000 $35.000 $22.000 $8.500 $265,500 $84,500 $3,000 $81,500 2017 $200,000 $124.000 $20.000 $18.000 $8.000 $170,000 $30.000 $3,000 $27,000 Change in 2018 compared to 2017 $150,000 $76.000 $15,000 $4.000 $500 $95,500 $54,500 SO $54,500 % change 75.00% 61.29% 75.00% 22.22% 6.25% 56.18% 181.67% 0.00% 201.85%

Working as follows:

в 10 11 Sales 12 Cost of goods sold 13 Selling Expenses 14 Administrative expenses 15 Interest expense 16 Total Expenses 17 Income before taxes 18 Income tax Expenses 19 Net income Daffy and friends Income statement 2018 $350,000 $200,000 $35.000 $22.000 $8.500 $265,500 $84,500 $3,000 $81,500 2017 $200,000 $124.000 $20,000 $18.000 $8.000 $170,000 $30.000 $3.000 $27,000 Change in 2018 compared to 2017 =B11-C11 =B12-C12 =B13-C13 =B14-C14 =B15-C15 =B16-C16 =B17-C17 =B18-C18 =B19-C19 % change =E11/C11 1=E12/C12 =E13/C13 =E14/C14 =E15/C15 =E16/C16 =E17/C17 =E18/C18 =E19/019

Daffy and friends
Horizontal Analysis of Income statement
Percent change over 2018
Sales	75%
Cost of goods sold	61.29%
Selling Expenses	75%
Administrative expenses	22.22%
Interest expense	6.25%
Total Expenses	56.18%
Income before taxes	181.67%
Income tax Expenses	0%
Net income	201.85%