E14-4 The comparative condensed income statements of Hendi Corporation are shown below.

Exercise 14-4 The comparative condensed income statements of Hendi Corporation are shown below.

HENDI CORPORATION Comparative Condensed Income Statements For the Years Ended December 31
	2014	2013
Net sales	$600,000	$500,000
Cost of goods sold	468,000	400,000
Gross profit	132,000	100,000
Operating expenses	60,000	54,000
Net income	$ 72,000	$ 46,000

(a) Prepare a horizontal analysis of the income statement data for Hendi Corporation using 2013 as a base. (Show the amounts of increase or decrease.) (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. 12.3%.)

HENDI CORPORATION Condensed Income Statements For the Years Ended December 31
				Increase or (Decrease) During 2013
	2014	2013	Amount	Percentage
Net sales	$600,000	$500,000
Cost of goods sold	468,000	400,000
Gross profit	132,000	100,000
Operating expenses	60,000	54,000
Net income	$72,000	$46,000

(b) Prepare a vertical analysis of the income statement data for Hendi Corporation in columnar form
for both years. (Round percentages to 1 decimal place, e.g. 12.3%.)

HENDI CORPORATION Condensed Income Statements For the Years Ended December 31
		2014				2013
	Amount		Percent		Amount		Percent
Net sales	$600,000				$500,000
Cost of goods sold	468,000				400,000
Gross profit	132,000				100,000
Operating expenses	60,000				54,000
Net income	$ 72,000				$ 46,000

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 (a)

                                                              HENDI CORPORATION

                                                         Condensed Income Statements
                                                     For the Years Ended December 31

			Increase or (Decrease)
			During 2013
	2014	2013	Amount	Percentage
Net sales	600000	500000	100000	20.0%

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