Revenue and expense data for Bluestem Company are as follows: Year 2 Year 1 Administrative expenses $ 37,000 $ 20,000 Cost of goods sold 350,000 320,000 Income tax expense 40,000 32,000 Sales 800,000 700,000 Selling expenses 150,000 110,000 (a) Prepare a comparative income statement, with vertical analysis, stating each item for both years as a percent of sales. (b) Comment upon significant changes disclosed by the comparative income statement. Round percentages to one decimal place.
Revenue and expense data for Bluestem Company are as follows: Year 2 Year 1 Administrative expenses $ 37,000 $ 20,000 Cost of goods sold 350,000 320,000 Income tax expense 40,000 32,000 Sales 800,000 700,000 Selling expenses 150,000 110,000 (a) Prepare a comparative income statement, with vertical analysis, stating each item for both years as a percent of sales. (b) Comment upon significant changes disclosed by the comparative income statement. Round percentages to one decimal place.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Revenue and expense data for Bluestem Company are as follows:
|
Year 2 |
Year 1 |
|
| Administrative expenses |
$ 37,000 |
$ 20,000 |
| Cost of goods sold |
350,000 |
320,000 |
| Income tax expense |
40,000 |
32,000 |
| Sales |
800,000 |
700,000 |
| Selling expenses |
150,000 |
110,000 |
| (a) | Prepare a comparative income statement, with vertical analysis, stating each item for both years as a percent of sales. |
| (b) | Comment upon significant changes disclosed by the comparative income statement. |
Round percentages to one decimal place.
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