Comparative Income Statement
Definition: A comparative income statement shows revenues, expenses, and net income side by side for two or more periods, with dollar and percentage changes fo…
Scope:BroadDifficulty:Easy
Part of: Income Statement
A comparative income statement shows revenues, expenses, and net income side by side for two or more periods, with dollar and percentage changes for horizontal analysis
| Fictitious Conglomeration Corporation | |||||||
|---|---|---|---|---|---|---|---|
| Income Statement | |||||||
| For the Year Ended December 31 | 2024 | 2025 | $ Change | % Change | 2024 % | 2025 % | Δ pp |
| Gross Revenue | $1,125,000 | $1,300,000 | 175,000 | 15.6% | 104.2% | 104.0% | (0.2) |
| Less: Sales Returns and Allowances | (27,000) | (30,000) | (3,000) | (11.1%) | -2.5% | -2.4% | +0.1 |
| Less: Sales Discounts | (18,000) | (20,000) | (2,000) | (11.1%) | -1.7% | -1.6% | +0.1 |
| Net Revenue | $1,080,000 | $1,250,000 | 170,000 | 15.7% | 100.0% | 100.0% | — |
| Cost of Goods Sold | (648,000) | (750,000) | (102,000) | (15.7%) | -60.0% | -60.0% | — |
| Gross Profit | $432,000 | $500,000 | 68,000 | 15.7% | 40.0% | 40.0% | — |
| Operating Expenses | |||||||
| Salaries & Wages | $148,000 | $165,000 | 17,000 | 11.5% | 13.7% | 13.2% | (0.5) |
| Depreciation | 54,000 | 68,000 | 14,000 | 25.9% | 5.0% | 5.4% | +0.4 |
| Amortization | 8,000 | 8,000 | — | — | 0.7% | 0.6% | (0.1) |
| Rent | 36,000 | 36,000 | — | — | 3.3% | 2.9% | (0.5) |
| Utilities | 10,800 | 12,000 | 1,200 | 11.1% | 1.0% | 1.0% | — |
| Insurance | 7,800 | 8,400 | 600 | 7.7% | 0.7% | 0.7% | (0.1) |
| Advertising | 12,000 | 16,000 | 4,000 | 33.3% | 1.1% | 1.3% | +0.2 |
| Office Supplies | 4,200 | 4,800 | 600 | 14.3% | 0.4% | 0.4% | — |
| Bad Debt Expense | 3,200 | 4,100 | 900 | 28.1% | 0.3% | 0.3% | — |
| Impairment of Intangibles | — | 5,000 | 5,000 | — | 0.0% | 0.4% | +0.4 |
| Total Operating Expenses | ($284,000) | ($327,300) | (43,300) | (15.2%) | -26.3% | -26.2% | +0.1 |
| Operating Income | $148,000 | $172,700 | 24,700 | 16.7% | 13.7% | 13.8% | +0.1 |
| Other Income / (Expenses) | |||||||
| Interest Income | $800 | $1,400 | 600 | 75.0% | 0.1% | 0.1% | — |
| Interest Expense | (13,200) | (15,600) | (2,400) | (18.2%) | -1.2% | -1.2% | — |
| Loss on Sale of Equipment | (1,500) | — | 1,500 | 100.0% | -0.1% | 0.0% | +0.1 |
| Gain on Sale of Investments | — | 2,000 | 2,000 | — | 0.0% | 0.2% | +0.2 |
| Total Other Income / (Expenses) | ($13,900) | ($12,200) | 1,700 | 12.2% | -1.3% | -1.0% | +0.3 |
| Income Before Taxes | $134,100 | $160,500 | 26,400 | 19.7% | 12.4% | 12.8% | +0.4 |
| Current Income Tax Expense | (26,700) | (31,460) | (4,760) | (17.8%) | -2.5% | -2.5% | — |
| Deferred Income Tax Expense | (3,400) | (4,200) | (800) | (23.5%) | -0.3% | -0.3% | — |
| Total Income Tax Expense | ($30,100) | ($35,660) | (5,560) | (18.5%) | -2.8% | -2.9% | (0.1) |
| Net Income | $104,000 | $124,840 | 20,840 | 20.0% | 9.6% | 10.0% | +0.4 |
| Retained Earnings Reconciliation | |||||||
| Beginning Retained Earnings | $161,000 | $225,000 | 64,000 | 39.8% | 154.8% | 180.2% | +25.4 |
| Add: Net Income | 104,000 | 124,840 | 20,840 | 20.0% | 100.0% | 100.0% | — |
| Less: Dividends Paid | (40,000) | (50,000) | (10,000) | (25.0%) | -38.5% | -40.1% | (1.6) |
| Ending Retained Earnings | $225,000 | $299,840 | 74,840 | 33.3% | 216.3% | 240.2% | +23.8 |
Gross Margin: 40.0% | Operating Margin: 13.8% | Net Margin: 10.0%
DurationN/A
Related Subjects
Understand First
- Income StatementSingle-period version
Related
- Comparative Balance SheetComparative balance sheet
- Comparative Statement of Cash FlowsComparative cash flows
See Also
- Horizontal AnalysisPeriod-to-period trend analysis
External Links
- Income statement — Wikipedia