The comparative condensed income statements of Dubai Company are shown below. Dubai Company Comparative Condensed Income Statements For the Years Ended December 31 2021 2020 $620,000 450.000 170,000...


The comparative condensed income statements of Dubai Company are shown below.<br>Dubai Company<br>Comparative Condensed Income Statements<br>For the Years Ended December 31<br>2021<br>2020<br>$620,000<br>450.000<br>170,000<br>54.000<br>$116,000<br>Net sales<br>$500,000<br>Cost of goods sold<br>Gross profit<br>Operating expenses<br>Net income<br>400,000<br>100,000<br>40,000<br>$ 60,000<br>Required:<br>1. Prepare a horizontal analysis of the income statement data for Dubai Company using<br>2020 as a base. (Show the amounts of increase or decrease.)<br>2. Prepare a vertical analysis of the income statement data for Dubai Company in<br>columnar form for both years.<br>3. Based on the analysis in number 1 and 2, discuss briefly the financial position of Dubai<br>Company.<br>

Extracted text: The comparative condensed income statements of Dubai Company are shown below. Dubai Company Comparative Condensed Income Statements For the Years Ended December 31 2021 2020 $620,000 450.000 170,000 54.000 $116,000 Net sales $500,000 Cost of goods sold Gross profit Operating expenses Net income 400,000 100,000 40,000 $ 60,000 Required: 1. Prepare a horizontal analysis of the income statement data for Dubai Company using 2020 as a base. (Show the amounts of increase or decrease.) 2. Prepare a vertical analysis of the income statement data for Dubai Company in columnar form for both years. 3. Based on the analysis in number 1 and 2, discuss briefly the financial position of Dubai Company.

Jun 10, 2022
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