20Y2 Amount 20Y2 Percent 20Y1 Amount 20Y1 Percent Sales $1,300,000 fill in the blank bcf5f3fbd02f054_1% $1,180,000 fill in the blank bcf5f3fbd02f054_2% Cost of goods sold 682,500 fill in the blank bcf5f3fbd02f054_3% 613,600 fill in the blank bcf5f3fbd02f054_4% Gross profit $617,500 fill in the blank bcf5f3fbd02f054_5% $566,400 fill in the blank bcf5f3fbd02f054_6% Selling expenses $260,000 fill in the blank bcf5f3fbd02f054_7% $188,800 fill in the blank bcf5f3fbd02f054_8% Administrative expenses 169,000 fill in the blank bcf5f3fbd02f054_9% 177,000 fill in the blank bcf5f3fbd02f054_10% Total operating expenses $429,000 fill in the blank bcf5f3fbd02f054_11% $365,800 fill in the blank bcf5f3fbd02f054_12% Income from operations $188,500 fill in the blank bcf5f3fbd02f054_13% $200,600 fill in the blank bcf5f3fbd02f054_14% Other revenue 78,000 fill in the blank bcf5f3fbd02f054_15% 70,800 fill in the blank bcf5f3fbd02f054_16% Income before income tax $266,500 fill in the blank bcf5f3fbd02f054_17% $271,400 fill in the blank bcf5f3fbd02f054_18% Income tax expense 117,000 fill in the blank bcf5f3fbd02f054_19% 106,200 fill in the blank bcf5f3fbd02f054_20% Net income $149,500 fill in the blank bcf5f3fbd02f054_21% $165,200 fill in the blank bcf5f3fbd02f054_22%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. 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. Round to one decimal place. Enter all amounts as positive numbers.

Fielder Industries Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
	20Y2 Amount	20Y2 Percent	20Y1 Amount	20Y1 Percent
Sales	$1,300,000	fill in the blank bcf5f3fbd02f054_1%	$1,180,000	fill in the blank bcf5f3fbd02f054_2%
Cost of goods sold	682,500	fill in the blank bcf5f3fbd02f054_3%	613,600	fill in the blank bcf5f3fbd02f054_4%
Gross profit	$617,500	fill in the blank bcf5f3fbd02f054_5%	$566,400	fill in the blank bcf5f3fbd02f054_6%
Selling expenses	$260,000	fill in the blank bcf5f3fbd02f054_7%	$188,800	fill in the blank bcf5f3fbd02f054_8%
Administrative expenses	169,000	fill in the blank bcf5f3fbd02f054_9%	177,000	fill in the blank bcf5f3fbd02f054_10%
Total operating expenses	$429,000	fill in the blank bcf5f3fbd02f054_11%	$365,800	fill in the blank bcf5f3fbd02f054_12%
Income from operations	$188,500	fill in the blank bcf5f3fbd02f054_13%	$200,600	fill in the blank bcf5f3fbd02f054_14%
Other revenue	78,000	fill in the blank bcf5f3fbd02f054_15%	70,800	fill in the blank bcf5f3fbd02f054_16%
Income before income tax	$266,500	fill in the blank bcf5f3fbd02f054_17%	$271,400	fill in the blank bcf5f3fbd02f054_18%
Income tax expense	117,000	fill in the blank bcf5f3fbd02f054_19%	106,200	fill in the blank bcf5f3fbd02f054_20%
Net income	$149,500	fill in the blank bcf5f3fbd02f054_21%	$165,200	fill in the blank bcf5f3fbd02f054_22%

2. The net income as a percent of sales has . All the costs and expenses, other than selling expenses, have maintained their approximate cost as a percent of sales between 20Y1 and 20Y2. Selling expenses as a percent of sales, however, have . Apparently, the new advertising campaign been successful. The increased expense produced sufficient sales to maintain relative profitability. Thus, selling expenses as a percent of sales have .

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