Make an income statement in comparative form

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Problem - 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

$4,000,000

$3,600,000

Cost of goods sold

2,280,000

1,872,000

Selling expenses

600,000

648,000

Administrative expenses

520,000

360,000

Income tax expense

240,000

216,000

Required -

a. Make an income statement in comparative form, stating each item for both years as a percent of sales. Round to the nearest whole percentage.

b. Comment on the significant changes disclosed by the comparative income statement.

Reference no: EM132778708

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