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Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 2OY1 20Υ2 20Y1 Sales ... $1,500,000 $1,250,000 Cost of goods sold.... Gross profit ..... Selling expenses 510,000 475,000 $ 990,000 $ 270,000 $ 775,000 $ 200,000 Administrative expenses. 180,000 $ 450,000 $ 540,000 156,250 $ 356,250 $ 418,750 Total operating expenses Income from operations Other revenue 60,000 50,000 $ 600,000 $ 468,750 Income before income tax Income tax expense . 450,000 375,000 ... $ 150,000 $ 93,750 Net income ..

Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 2OY1 20Υ2 20Y1 Sales ... $1,500,000 $1,250,000 Cost of goods sold.... Gross profit ..... Selling expenses 510,000 475,000 $ 990,000 $ 270,000 $ 775,000 $ 200,000 Administrative expenses. 180,000 $ 450,000 $ 540,000 156,250 $ 356,250 $ 418,750 Total operating expenses Income from operations Other revenue 60,000 50,000 $ 600,000 $ 468,750 Income before income tax Income tax expense . 450,000 375,000 ... $ 150,000 $ 93,750 Net income ..

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.4.7P
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For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $50,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement:

Please see  the attachment for details:

Instructions
1. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to sales for each of the years. Round percentages to one decimal place.
2. To the extent the data permit, comment on the significant relationships
revealed by the vertical analysis prepared in (1).

Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 2OY1 20Υ2 20Y1 Sales ... $1,500,000 $1,250,000 Cost of goods sold.... Gross profit ..... Selling expenses 510,000 475,000 $ 990,000 $ 270,000 $ 775,000 $ 200,000 Administrative expenses. 180,000 $ 450,000 $ 540,000 156,250 $ 356,250 $ 418,750 Total operating expenses Income from operations Other revenue 60,000 50,000 $ 600,000 $ 468,750 Income before income tax Income tax expense . 450,000 375,000 ... $ 150,000 $ 93,750 Net income ..
Transcribed Image Text:Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 2OY1 20Υ2 20Y1 Sales ... $1,500,000 $1,250,000 Cost of goods sold.... Gross profit ..... Selling expenses 510,000 475,000 $ 990,000 $ 270,000 $ 775,000 $ 200,000 Administrative expenses. 180,000 $ 450,000 $ 540,000 156,250 $ 356,250 $ 418,750 Total operating expenses Income from operations Other revenue 60,000 50,000 $ 600,000 $ 468,750 Income before income tax Income tax expense . 450,000 375,000 ... $ 150,000 $ 93,750 Net income ..
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