Current Year Previous Year Sales $4,000,000 $3,600,000 Cost of goods sold 2,280,000 1,872,000 Selling expenses 600,000 648,000 Administrative expenses 520,000 360,000 Income tax expense 240,000 216,000
Current Year Previous Year Sales $4,000,000 $3,600,000 Cost of goods sold 2,280,000 1,872,000 Selling expenses 600,000 648,000 Administrative expenses 520,000 360,000 Income tax expense 240,000 216,000
Chapter3: Business Income And Expenses
Section: Chapter Questions
Problem 5MCQ
Related questions
Question
Vertical analysis of income statement
Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:
A. Prepare an income statement in comparative form, stating each
item for both years as a percent of sales. (Round to the nearest
whole percentage.)
B. Comment on the significant changes disclosed by the
comparative income statement.
Transcribed Image Text:Current Year Previous Year
Sales
$4,000,000
$3,600,000
Cost of goods sold
2,280,000
1,872,000
Selling expenses
600,000
648,000
Administrative expenses 520,000
360,000
Income tax expense
240,000
216,000
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