(1 MARKS) COMPARATIVE INCOME STATEMENTS OF SPYRES MANUFACTURING COM...

2. - FINANCIAL STATEMENT ANALYSIS MOCK EXAM
FINANCIAL STATEMENT ANALYSIS MOCK EXAM

2. (1 marks) Comparative income statements of Spyres Manufacturing Company for Years 9

and 8 are reproduced below:

Required:

a). Prepare common size statements showing the percent of each item to net sales for both

Year 8 and Year 9. Include a column reporting the percentage increase or decrease for Year 9

relative to Year 8 (round numbers to the tenth of 1%).

b). Interpret the trend shown in your percentage calculations of a. What areas identified from

this analysis should be a matter of managerial concern.