Prepare an income statement in comparative form

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Problem - Vertical analysis of income statement - Revenue and expense data for Mandell Technologies Co. are as follows:

 

2012

2011

Sales

$800,000

$740,000

Cost of goods sold

504,000

407,000

Selling expenses

120,000

140,600

Administrative expenses

128,000

125,800

Income tax expense

33,600

48,100

Required -

a. Prepare an income statement in comparative form, stating each item for both 2012 and 2011 as a percent of sales. Round to one decimal place.

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

Reference no: EM132879487

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