Current Year Previous Year Sales $600,000 $528,000 Cost of goods sold 390,000 316,800 Selling expenses...
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Current Year Previous Year Sales $600,000 $528,000 Cost of goods sold 390,000 316,800 Selling expenses 84,000 84,480 90,000 Administrative expenses 73,920 21,120 Income tax expense 12,000 a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Amount Current year Percent Previous year Amount Previous year Percent Sales $600,000 $528,000 316,800 390,000 Cost of goods sold Selling expenses 84,000 84,480 73,920 Administrative expenses90,000 12,000 21,120 Income tax expense b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 5 percentage points, while selling expenses by 2 by 2 percentage points, and administrative expenses by 1 percentage points. Thus, net income as a percent of sales percentage points
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