A Comparative Income Statement Equation

Comparative income statement example there is no standard comparative.

A comparative income statement equation. This increase or decrease in absolute amounts is mentioned. Spikes and dips in rev. Comparative balance sheet it is a statement that shows the assets liabilities and capital of a firm as at a given date. Solution for prepare a comparative income statement for these two years in vertical form stating each item as a percent of revenues.

Mckenzie sales ltd comparative income statement this year last year 7 300 000 5 548 000 4 650 000 3 508 000 sales cost of goods sold. A comparative income statement makes it easy to point out trends in performance. This is done by subtracting the previous year s item amounts from the current year ones. Income statement formula is represented as gross profit revenues cost of goods sold operating income gross profit operating expenses net income operating income non operating items.

Comparative income statement this is a statement of income for two consecutive periods in terms of the operating incomes and other incomes and expenses. Comparative income statement format of abc limited for the period ended 2016 and 2017 based on the above comparative income statement of abc limited it can be analyzed how an increase in sales 25 over the. Comparative income statement for the years ended december 31 current year amount previous year amount increase decrease amount increase decrease percent sales 2 240 000 2 000 000 cost of goods sold. The intent of this format is to allow the reader to compare the results of multiple historical periods thereby giving a view of how a business is performing over time.

You don t have to flip back and forth between individual documents. Round your percentage answers to 1 decimal place i e 0 1234 should be entered as 12 3 this year last year sales cost of goods sold gross. A comparative income statement presents the results of multiple accounting periods in separate columns.