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Vertical Analysis of Income Statement For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $21,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement:                            Tri-Comic Company              Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1                                                                                20Y2   20Y1 Sales                                                     $737,000   $634,000 Cost of merchandise sold                    353,760   336,020 Gross profit                                         $383,240   $297,980 Selling expenses                                  $147,400   $120,460 Administrative expenses                         81,070   82,420 Total operating expenses                  $228,470   $202,880 Income from operations                     $154,770   $95,100 Other revenue                                         44,220   38,040 Income before income tax expense $198,990   $133,140 Income tax expense                                81,070   50,720 Net income                                                 $117,920 $82,420 Required: 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. Enter percentages as whole numbers. Enter all amounts as positive numbers.                         Tri-Comic Company            Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1

Vertical Analysis of Income Statement For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $21,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement:                            Tri-Comic Company              Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1                                                                                20Y2   20Y1 Sales                                                     $737,000   $634,000 Cost of merchandise sold                    353,760   336,020 Gross profit                                         $383,240   $297,980 Selling expenses                                  $147,400   $120,460 Administrative expenses                         81,070   82,420 Total operating expenses                  $228,470   $202,880 Income from operations                     $154,770   $95,100 Other revenue                                         44,220   38,040 Income before income tax expense $198,990   $133,140 Income tax expense                                81,070   50,720 Net income                                                 $117,920 $82,420 Required: 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. Enter percentages as whole numbers. Enter all amounts as positive numbers.                         Tri-Comic Company            Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1

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 9.2.1P
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Vertical Analysis of Income Statement

For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $21,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement:

                           Tri-Comic Company

             Comparative Income Statement

For the Years Ended December 31, 20Y2 and 20Y1

                                                                               20Y2   20Y1
Sales                                                     $737,000   $634,000
Cost of merchandise sold                    353,760   336,020
Gross profit                                         $383,240   $297,980
Selling expenses                                  $147,400   $120,460
Administrative expenses                         81,070   82,420
Total operating expenses                  $228,470   $202,880
Income from operations                     $154,770   $95,100
Other revenue                                         44,220   38,040
Income before income tax expense $198,990   $133,140
Income tax expense                                81,070   50,720

Net income                                                 $117,920 $82,420

Required:

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. Enter percentages as whole numbers. Enter all amounts as positive numbers.

                        Tri-Comic Company
           Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
                 20Y2
             Amount		           20Y2
       Percent		        20Y1
     Amount		                         20Y1
                     Percent
Sales $737,000 fill in the blank % $634,000       fill in the blank %
Cost of merchandise sold 353,760 fill in the blank % 336,020 fill in the blank %
Gross profit $383,240 fill in the blank % $297,980 fill in the blank %
Selling expenses $147,400 fill in the blank % $120,460 fill in the blank %
Administrative expenses 81,070 fill in the blank % 82,420 fill in the blank %
Total operating expenses $228,470 fill in the blank % $202,880 fill in the blank %
Income from operations $154,770 fill in the blank % $95,100 fill in the blank %
Other revenue 44,220 fill in the blank % 38,040 fill in the blank %
Income before income tax expense $198,990 fill in the blank % $133,140 fill in the blank %
Income tax expense 81,070 fill in the blank % 50,720 fill in the blank %
Net income $117,920 fill in the blank % $82,420 fill in the blank %

 

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