Solution-Prepare a comparative income statement

Prepare a comparative income statement

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Reference no: EM133091911

Question - For 20Y2, McDade Company reported a decline in net income. At the end of the year, T. Burrows, the president, is presented with the following condensed comparative income statement:

McDade Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1
	20Y2	20Y1
Sales	$414,440	$380,000
Cost of merchandise sold	288,000	240,000
Gross profit	$126,440	$140,000
Selling expenses	$40,000	$32,000
Administrative expenses	23,600	20,000
Total operating expenses	$63,600	$52,000
Income from operations	$62,840	$88,000
Other revenue	2,045	1,600
Income before income tax expense	$64,885	$89,600
Income tax expense	18,200	26,900
Net income	$46,685	$62,700

Required - Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year.

Reference no: EM133091911

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Prepare a comparative income statement

Reference no: EM133091911

Reference no: EM133091911

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