Solution-Prepare an income statement in comparative form

Prepare an income statement in comparative form

Assignment Help Managerial Accounting

Reference no: EM132758029

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. Prepare 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: EM132758029

Questions Cloud

Discuss what you can do to develop those skills : Identify at least (two) 2 skills you would need to be a project manager and discuss what you can do to develop those skills.

Find what the direct materials quantity variance is : If the actual quantity purchased and used was 5,620 pounds, and the actual price per pound was $3.6, the direct materials quantity variance is

How much of the firm value is accounted : How much better off will be Jarama's shareholders be if the firm borrows €40 more and uses it to repurchase stock?

Product for purchasing through an online auction : How should a buying organisation identify the appropriate products for purchasing through an online auction and How should suppliers be selected

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

How would you explain your point of view : A student at school believes that all fixed costs are always avoidable. Do you agree? How would you explain your point of view? Explain in simple terms.

Explain how performance appraisals : Explain how performance appraisals can be used as part of employee development.

What mark annual cash flows will be : The equipment will be depreciated over 6 years with no residual value. Mark' annual net income for the year will be $86,940. Mark' annual cash flows will be

What is the implicit cost of trade credit under given terms : Book Depot INC Sells on terms of 1/15, net 55. What is the implicit cost of trade credit under these terms? Use 365 day year. Round the answer to two decimal.

User Account

All Pages

Prepare an income statement in comparative form

Reference no: EM132758029

Reference no: EM132758029

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT