For 2012, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $50,000 for advertising. At the end of the year, Willie Green, the president, is presented with the following condensed comparative income statement: Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 2012 $1,500,000 510,000 $990,000 $270,000 180,000 $450,000 $540,000 60,000 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue Income before income tax Income tax expense Net income Required: $600,000 450,000 $150,000 20Y1 $1,250,000 475,000 $775,000 $200,000 156,250 $356,250 $418,750 50,000 $468,750 375,000 $93,750 Required: 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.

For 2012, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $50,000 for advertising. At the end of the year, Willie Green, the president, is presented with the following condensed comparative income statement: Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 2012 $1,500,000 510,000 $990,000 $270,000 180,000 $450,000 $540,000 60,000 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue Income before income tax Income tax expense Net income Required: $600,000 450,000 $150,000 20Y1 $1,250,000 475,000 $775,000 $200,000 156,250 $356,250 $418,750 50,000 $468,750 375,000 $93,750 Required: 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.

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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