Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:
Current Year Previous Year
Sales $ $
Cost of merchandise sold
Selling expenses
Administrative expenses
Income tax expense
Question Content Area
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
Current year Amount Current year Percent Previous year Amount Previous year Percent
Sales $ fill in the blank dffafbffc
$ fill in the blank dffafbffc
Cost of merchandise sold fill in the blank dffafbffc
fill in the blank dffafbffc
$ Select
Select
$ Select
Select
Selling expenses fill in the blank dffafbffc
fill in the blank dffafbffc
Administrative expenses fill in the blank dffafbffc
fill in the blank dffafbffc
$ Select
Select
$ Select
Select
Select
Select
Select
Select
Income tax expense fill in the blank dffafbffc
fill in the blank dffafbffc
$ Select
Select
$ Select
Select
Question Content Area
b The vertical analysis indicates that the cost of merchandise sold as a percent of sales
by percentage points, while selling expenses
by percentage points, and administrative expenses
by percentage points. Thus, net income as a percent of sales
by percentage points.
