| | | The Stair Company | | Comparative Income Statement | | For Years Ended December 31, 2019 and 2018 | | | Amounts | Percent of net sales | Increase or (Decrease) | | Account name | 2019 | 2018 | 2019 | 2018 | Amount | Percent | | Revenue | | | | | | | | | | | Sales | 1,025,000 | 818,400 | | % | | % | | | % | | Less Sales Returns and Allowances | 25,000 | 18,400 | | % | | % | | | % | | Net Sales | 1,000,000 | 800,000 | 0.0 | % | 0.0 | % | 0 | | % | | Cost of Goods Sold | | | | | | | | | | | Merchandise Inventory, January 1 | 90,000 | 88,800 | | % | | % | | | % | | Net Purchases | 369,500 | 297,600 | | % | | % | | | % | | Total Merchandise Available for Sale | 459,500 | 386,400 | 0.0 | % | 0.0 | % | $0 | | % | | Less Merchandise Inventory, December 31 | 96,000 | 90,000 | | % | | % | | | % | | Cost of Goods Sold | 363,500 | 296,400 | | % | | % | | | % | | Gross Profit on Sales | 636,500 | 503,600 | 0.0 | % | 0.0 | % | 0 | | % | | Operating Expenses | | | | | | | | | | | Selling Expenses | | | | | | | | | | | Sales Salaries Expense | 89,000 | 80,000 | | % | | % | | | % | | Payroll Tax ExpenseSelling | 9,000 | 8,800 | | % | | % | | | % | | Other Selling Expenses | 31,600 | 20,000 | | % | | % | | | % | | Total Selling Expenses | 129,600 | 108,800 | 0.0 | % | 0.0 | % | $0 | | % | | General and Administrative Expenses | | | | | | | | | | | Officers' Salaries Expense | 156,000 | 121,600 | | % | | % | | | % | | Payroll Tax ExpenseAdministrative | 17,000 | 11,200 | | % | | % | | | % | | Depreciation Expense | 8,000 | 8,000 | | % | | % | | | % | | Other General and Administrative Expenses | 16,000 | 11,200 | | % | | % | | | % | | Total General and Administrative Expenses | 197,000 | 152,000 | 0.0 | % | 0.0 | % | $0 | | % | | Total Operating Expenses | 326,600 | 260,800 | | % | | % | | | % | | Net Income Before Income Taxes | 309,900 | 242,800 | | % | | % | | | % | | Income Tax Expense | 92,970 | 72,840 | | % | | % | | | % | | Net Income After Income Taxes | 216,930 | 169,960 | 0.0 | % | 0.0 | % | $0 | | % | |
