M13-1 Using the following income statements, perform the calculations needed for horizontal…

Using the following income statements, perform the calculations needed for horizontal analyses. Round percentages to one decimal place.

LOCKEY FENCING CORPORATION

Income Statements

For the year ended December 31

2013 2012

Amounts Amounts

Net Sales $100,000.00 $75,000.00

Cost of Goods Sold $58,000.00 $45,000.00

Gross Profit $42,000.00 $30,000.00

Selling, General, and Administrative Expenses $9,000.00 $4,500.00

Income from Operations$33,000.00 $25,500.00

Interest Expense $3,000.00 $3,750.00

Income before Income Tax $30,000.00 $21,750.00

Income Tax Expense $9,000.00 $6,525.00

Net Income $21,000.00 $15,225.00