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…

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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

Sample Income StatementComparative
Fictitious Company LLC
Income Statement
For the Year Ended December 3120242025$ Change% Change
Revenue$1,080,000$1,250,000170,00015.7%
Cost of Goods Sold(648,000)(750,000)(102,000)(15.7%)
Gross Profit$432,000$500,00068,00015.7%
Operating Expenses
Salaries & Wages$148,000$165,00017,00011.5%
Depreciation54,00068,00014,00025.9%
Amortization8,0008,000
Rent36,00036,000
Utilities10,80012,0001,20011.1%
Insurance7,8008,4006007.7%
Advertising12,00016,0004,00033.3%
Office Supplies4,2004,80060014.3%
Bad Debt Expense2,4003,12072030.0%
Total Operating Expenses($283,200)($321,320)(38,120)(13.5%)
Operating Income$148,800$178,68029,88020.1%
Other Income / (Expenses)
Interest Income$800$1,40060075.0%
Interest Expense(13,200)(15,600)(2,400)(18.2%)
Total Other Income / (Expenses)($12,400)($14,200)(1,800)(14.5%)
Income Before Taxes$136,400$164,48028,08020.6%
Income Tax Expense(32,400)(39,640)(7,240)(22.3%)
Net Income$104,000$124,84020,84020.0%
Retained Earnings Reconciliation
Beginning Retained Earnings$161,000$225,00064,00039.8%
Add: Net Income104,000124,84020,84020.0%
Less: Member Distributions(40,000)(50,000)(10,000)(25.0%)
Ending Retained Earnings$225,000$299,84074,84033.3%

Gross Margin: 40.0%  |  Operating Margin: 14.3%  |  Net Margin: 10.0%

DurationN/A

Related Subjects

Understand First

Related

See Also

  • Horizontal AnalysisPeriod-to-period trend analysis

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