# Project #44193 - Horizontal Analysis of Income Statement

- Just a Horizontal Analysis of the Income Statement

- In Microsoft Excel w/ formulas/formatting

- 1 Question Only (Prepare a horizontal analysis of the income statement for Cookie & Coffee Creations Inc. using 2017 as a base year.)

(Note: This is a continuation of the Cookie Chronicle from Chapters 1 through 12.)

Natalie and Curtis have comparative balance sheets and income statements for Cookie & Coffee Creations Inc. They have been told that they can use these financial statements to prepare horizontal and vertical analyses, to calculate financial ratios., to analyze how their business is doing, and to make some decisions they have been considering.

CCC13 The comparative balance sheet of Cookie & Coffee Creations Inc. at October 31, 2018 for the years 2018 and 2017, and the income statements for the years ended October 31, 2017 and 2018, are presented below.

Income Statement

Year Ended October 31

 2018 2017 Sales \$485,625 \$462,500 Cost of goods sold 222,694 208,125 Gross profit 262,931 254,375 Operating expenses    Salaries and wages expense 147,979 146,350 Depreciation expense 17,600 9,100 Other operating expenses 48,186 42,925 Total operating expenses 213,765 198,375 Income from operations 49,166 56,000 Other expenses    Interest expense 413 0 Loss on disposal of plant assets 2,500 0 Total other expenses 2,913 0 Income before income tax 46,253 56,000 Income tax expense 9,251 14,000 Net income \$  37,002 \$  42,000

Natalie and Curtis are thinking about borrowing an additional \$20,000 to buy more kitchen equipment. The loan would be repaid over a 4-year period. The terms of the loan provide for equal semi-annual payments of \$2,500 on May 1 and November 1 of each year, plus interest of 5% on the outstanding balance.

Instructions (One Question Only)

(b)Prepare a horizontal analysis of the income statement for Cookie & Coffee Creations Inc. using 2017 as a base year.

 Subject Business Due By (Pacific Time) 10/21/2014 12:00 am
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