Revenue and expense data for Young Technologies Inc. are as follows: Year 2Year 1Sales$500,000 $440,000 Cost of merchandise sold325,000 242,000 Selling expenses70,000 79,200 Administrative expenses75,000 70,400 Income tax expense10,500 16,400 Required:Question Content Areaa. Prepare an income statement in comparative form, stating each item for both years as an amount and as a percent of sales. Round percentage amounts to nearest whole percent.Young Technologies Inc.Comparative Income StatementFor the Years Ended December 31, Year 2 and Year 1 Year 2 AmountYear 2 PercentYear 1 AmountYear 1 Percent $- Select -- Select -%$- Select -- Select -% - Select -- Select -- Select -- Select - $- Select -- Select -%$- Select -- Select -% $- Select -- Select -%$- Select -- Select -% - Select -- Select -- Select -- Select -Total expenses$fill in the blank 86d00500602205c_26fill in the blank 86d00500602205c_27%$fill in the blank 86d00500602205c_28fill in the blank 86d00500602205c_29% $- Select -- Select -%$- Select -- Select -% - Select -- Select -- Select -- Select - $- Select -- Select -%$- Select -- Select -% Question Content Areab. Complete the following regarding the significant changes disclosed by the comparative income statement.The vertical analysis indicates that the Cost of merchandise sold as a percent of sales between the two years. Selling and administrative expenses as a percentage of sales and income tax expense . Overall, net income as a percent of sales .

the income statement shows the company's net income or loss, which is calculated by subtracting all…

Answered: evenue and expense data for

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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a. Prepare an income statement in comparative form, stating each item for both years as an amount and as a percent of sales. Round percentage amounts to nearest whole percent.

Young Technologies Inc.Comparative Income StatementFor the Years Ended December 31, Year 2 and Year 1

	Year 2 Amount	Year 2 Percent	Year 1 Amount	Year 1 Percent
	$- Select -	- Select -%	$- Select -	- Select -%
	- Select -	- Select -	- Select -	- Select -
	$- Select -	- Select -%	$- Select -	- Select -%
	$- Select -	- Select -%	$- Select -	- Select -%
	- Select -	- Select -	- Select -	- Select -
Total expenses	$fill in the blank 86d00500602205c_26	fill in the blank 86d00500602205c_27%	$fill in the blank 86d00500602205c_28	fill in the blank 86d00500602205c_29%
	$- Select -	- Select -%	$- Select -	- Select -%
	- Select -	- Select -	- Select -	- Select -
	$- Select -	- Select -%	$- Select -	- Select -%

Question Content Area

b. Complete the following regarding the significant changes disclosed by the comparative income statement.

The vertical analysis indicates that the Cost of merchandise sold as a percent of sales

between the two years. Selling and administrative expenses as a percentage of sales

and income tax expense

. Overall, net income as a percent of sales

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	Year 2	Year 1
Sales	$500,000		$440,000
Cost of merchandise sold	325,000		242,000
Selling expenses	70,000		79,200
Administrative expenses	75,000		70,400
Income tax expense	10,500		16,400