Revenue and expense data for Young Technologies Inc. are as follows: Year 2 Year 1 Sales $500,000 $440,000 Cost of goods sold 325,000 242,000 Selling expenses 70,000 79,200 Administrative expenses 75,000 70,400 Income tax expense 10,500 16,400 Required: (a) Prepare an income statement in comparative form, stating each item for both years as an amount and as a percent of sales. Round your percentages answers to one decimal place. Enter all amounts as positive numbers. (b) Comment on the significant changes disclosed by the comparative income statement. Prepare an income statement in comparative form, stating each item for both years as an amount and as a percent of sales. Round your percentages answers to one decimal place. Enter all amounts as positive numbers. Young Technologies Inc. Comparative Income Statement For the Years Ended December 31, Year 2 and Year 1 1 Year 2 Year 2 Year 1 Year 1 2 Amount Percent Amount Percent 3 Sales 4 Cost of goods sold 5 Gross profit 6 Selling expenses 7 Administrative expenses 8 Total expenses 9 Income from operations 10 Income tax expense 11 Net income Comment on the significant changes disclosed by the comparative income statement. The vertical analysis indicates that the cost of goods sold as a percent of sales by 10% between the two years. Selling and administrative expenses as a percentage of sales by 5%, and income tax expense by 2%. Overall, net income as a percent of sales by 3%.
Revenue and expense data for Young Technologies Inc. are as follows: Year 2 Year 1 Sales $500,000 $440,000 Cost of goods sold 325,000 242,000 Selling expenses 70,000 79,200 Administrative expenses 75,000 70,400 Income tax expense 10,500 16,400 Required: (a) Prepare an income statement in comparative form, stating each item for both years as an amount and as a percent of sales. Round your percentages answers to one decimal place. Enter all amounts as positive numbers. (b) Comment on the significant changes disclosed by the comparative income statement. Prepare an income statement in comparative form, stating each item for both years as an amount and as a percent of sales. Round your percentages answers to one decimal place. Enter all amounts as positive numbers. Young Technologies Inc. Comparative Income Statement For the Years Ended December 31, Year 2 and Year 1 1 Year 2 Year 2 Year 1 Year 1 2 Amount Percent Amount Percent 3 Sales 4 Cost of goods sold 5 Gross profit 6 Selling expenses 7 Administrative expenses 8 Total expenses 9 Income from operations 10 Income tax expense 11 Net income Comment on the significant changes disclosed by the comparative income statement. The vertical analysis indicates that the cost of goods sold as a percent of sales by 10% between the two years. Selling and administrative expenses as a percentage of sales by 5%, and income tax expense by 2%. Overall, net income as a percent of sales by 3%.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 40E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...
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Question
Revenue and expense data for Young Technologies Inc. are as follows:
|
Year 2
|
Year 1
|
Sales | $500,000 | $440,000 |
Cost of goods sold | 325,000 | 242,000 |
Selling expenses | 70,000 | 79,200 |
Administrative expenses | 75,000 | 70,400 |
Income tax expense | 10,500 | 16,400 |
Required: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(a) | Prepare an income statement in comparative form, stating each item for both years as an amount and as a percent of sales. Round your percentages answers to one decimal place. Enter all amounts as positive numbers. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(b) |
Comment on the significant changes disclosed by the comparative income statement.
Prepare an income statement in comparative form, stating each item for both years as an amount and as a percent of sales. Round your percentages answers to one decimal place. Enter all amounts as positive numbers.
Comment on the significant changes disclosed by the comparative income statement.
The vertical analysis indicates that the cost of goods sold as a percent of sales by 10% between the two years. Selling and administrative expenses as a percentage of sales by 5%, and income tax expense by 2%. Overall, net income as a percent of sales by 3%.
|
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