For 20Y3, Greyhound Technology Company reported its most significant decline in net income in years. At the end of the year, Duane Vogel, the president, is presented with the following condensed comparative income statement: GREYHOUND TECHNOLOGY COMPANY Comparative Income Statement For the Years Ended December 31, 20Y3 and 20Y2 20Y3 20Y2 Sales $ 586,521 $ 513,000 Cost of goods sold (416,000) (320,000) Gross profit $ 170,521 $ 193,000 Selling expenses $ (59,130) $ (43,000) Administrative expenses (34,290) (27,000) Total operating expenses $ (93,420) $ (70,000) Income from operations $ 77,101 $ 123,000 Other income 2,809 2,200 Income before income tax $ 79,910 $ 125,200 Income tax expense (22,400) (37,600) Net income $ 57,510 $ 87,600
For 20Y3, Greyhound Technology Company reported its most significant decline in net income in years. At the end of the year, Duane Vogel, the president, is presented with the following condensed comparative income statement: GREYHOUND TECHNOLOGY COMPANY Comparative Income Statement For the Years Ended December 31, 20Y3 and 20Y2 20Y3 20Y2 Sales $ 586,521 $ 513,000 Cost of goods sold (416,000) (320,000) Gross profit $ 170,521 $ 193,000 Selling expenses $ (59,130) $ (43,000) Administrative expenses (34,290) (27,000) Total operating expenses $ (93,420) $ (70,000) Income from operations $ 77,101 $ 123,000 Other income 2,809 2,200 Income before income tax $ 79,910 $ 125,200 Income tax expense (22,400) (37,600) Net income $ 57,510 $ 87,600
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter13: Financial Statement Analysis
Section: Chapter Questions
Problem 13.18MCE
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For 20Y3, Greyhound Technology Company reported its most significant decline in net income in years. At the end of the year, Duane Vogel, the president, is presented with the following condensed comparative income statement:
GREYHOUND TECHNOLOGY COMPANY Comparative Income Statement For the Years Ended December 31, 20Y3 and 20Y2 |
|||
20Y3 | 20Y2 | ||
Sales | $ 586,521 | $ 513,000 | |
Cost of goods sold | (416,000) | (320,000) | |
Gross profit | $ 170,521 | $ 193,000 | |
Selling expenses | $ (59,130) | $ (43,000) | |
Administrative expenses | (34,290) | (27,000) | |
Total operating expenses | $ (93,420) | $ (70,000) | |
Income from operations | $ 77,101 | $ 123,000 | |
Other income | 2,809 | 2,200 | |
Income before income tax | $ 79,910 | $ 125,200 | |
Income tax expense | (22,400) | (37,600) | |
Net income | $ 57,510 | $ 87,600 |
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