Question

Here are the comparative income statements of Ivanhoe Corporation. IVANHOE CORPORATION Comparative Income Statement For the Years Ended December 31 2022 2021 Net sales $624,100 $523,300 Cost of goods sold 462,100 405,800 Gross Profit 162,000 117,500 Operating expenses 72,300 44,300 Net income $ 89,700 $ 73,200 (a) Prepare a horizontal analysis of the income statement data for Ivanhoe Corporation, using 2021 as a base. (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. 12.1%.)

Answer 1

2022 2021 Change % Change

Net sales 624,100 523,300 100,800 19.23%

Cost of goods sold 462,100 405,800 56,300 13.87%

Gross profit 162,000 117,500 44,500 37.87%

Operating exp. 72,300 44,300 28,000 63.21%

Net Income 89,700 73,200 16,500 22.54%

Since we are using the 2021 income statement as base year, any change will be calculated by dividing the total change by the 2021 amount, and then multiply by 100 to get the %.