FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Vertical Analysis of Income Statement
Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:
Current Year
Previous Year
Sales
$409,000
$372,000
Cost of goods sold
257,670
208,320
61,350
66,960
Selling expenses
Administrative expenses
65,440
55,800
Income tax expense
8,180
14,880
a. Prepare an income statement in comparative form, stating each item for both years as a percent of
sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers.
Innovation Quarter Inc.
Comparative Income Statement
For the Years Ended December 31
Current year
Current year
Previous year
Previous year
Amount
Percent
Amount
Percent
Sales
$409,000
$372,000
Cost of goods sold
257,670
208,320
$4
Gross profit
151,330
Selling expenses
61,350
66,960
Administrative expenses
65,440
55,800
Total operating expenses
126,790
Income from operations
24,540
Income tax expense
8,180
14,880
2$
Net income
16,360
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Transcribed Image Text:Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $409,000 $372,000 Cost of goods sold 257,670 208,320 61,350 66,960 Selling expenses Administrative expenses 65,440 55,800 Income tax expense 8,180 14,880 a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers. Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Current year Previous year Previous year Amount Percent Amount Percent Sales $409,000 $372,000 Cost of goods sold 257,670 208,320 $4 Gross profit 151,330 Selling expenses 61,350 66,960 Administrative expenses 65,440 55,800 Total operating expenses 126,790 Income from operations 24,540 Income tax expense 8,180 14,880 2$ Net income 16,360 Feedback %24 %24 %24
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