Prepare comparative income statement for the two-year period

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Question - For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $25,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement:

Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1

 

20Y2

20Y1

Sales

$880,000

$757,000

Cost of merchandise sold

431,200

401,210

Gross profit

$448,800

$355,790

Selling expenses

$167,200

$136,260

Administrative expenses

88,000

90,840

Total operating expenses

$255,200

$227,100

Income from operations

$193,600

$128,690

Other revenue

35,200

30,280

Income before income tax expense

$228,800

$158,970

Income tax expense

88,000

60,560

Net income

$140,800

$98,410

Required - Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to sales for each of the years. Enter percentages as whole numbers. Enter all amounts as positive numbers.

Reference no: EM133090749

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