Fielder Industries Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Υ1 Sales .... $1,300,000 $1,180,000 Cost of goods sold.... Gross profit .... Selling expenses Adminstrative expenses .. 682,500 613,600 $ 617,500 $ 260,000 $ 566,400 $ 188,800 169,000 177,000 $ 429,000 $ 188,500 $ 365,800 $ 200,600 Total operating expenses Income from operations.. Other revenue 70,800 78,000 $ 266,500 $ 271,400 Income before income tax Income tax expense.. 117,000 106,200 $ 149,500 $ 165,200 Net income ...
Fielder Industries Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Υ1 Sales .... $1,300,000 $1,180,000 Cost of goods sold.... Gross profit .... Selling expenses Adminstrative expenses .. 682,500 613,600 $ 617,500 $ 260,000 $ 566,400 $ 188,800 169,000 177,000 $ 429,000 $ 188,500 $ 365,800 $ 200,600 Total operating expenses Income from operations.. Other revenue 70,800 78,000 $ 266,500 $ 271,400 Income before income tax Income tax expense.. 117,000 106,200 $ 149,500 $ 165,200 Net income ...
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
For 20Y2, Fielder Industries Inc. initiated a sales promotion campaign that included the expenditure of an additional $40,000 for advertising. At the end of the year, Leif Grando,the president, is presented with the following condensed comparative income statement:
Please see the attachment for details:
Instructions
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 percentages to one decimal place.
2. To the extent the data permit, comment on the significant relationships
revealed by the vertical analysis prepared in (1).
Transcribed Image Text:Fielder Industries Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Y2
20Υ1
Sales ....
$1,300,000
$1,180,000
Cost of goods sold....
Gross profit ....
Selling expenses
Adminstrative expenses ..
682,500
613,600
$ 617,500
$ 260,000
$ 566,400
$ 188,800
169,000
177,000
$ 429,000
$ 188,500
$ 365,800
$ 200,600
Total operating expenses
Income from operations..
Other revenue
70,800
78,000
$ 266,500
$ 271,400
Income before income tax
Income tax expense..
117,000
106,200
$ 149,500
$ 165,200
Net income ...
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