For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $16,000 for advertising. At the end of the year, Ahmad Rashad, the president, is presented with the following condensed comparative income statement: Sales Cost of goods sold Gross profit Selling expenses Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 Administrative expenses Total operating expenses Income from operations Other revenue Income before income tax Income tax expense Net income Required $576,000 264,960 $311,040 $109,440 57,600 $167,040 $144,000 23,040 $167,040 69,120 $97,920 2011 $495,000 247,500 $247,500 $89,100 59,400 $148,500 $99,000 24,750 $123,750 49,500 $74,250 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 the nearest "whole" percentage. Enter all amounts as positive numbers.
For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $16,000 for advertising. At the end of the year, Ahmad Rashad, the president, is presented with the following condensed comparative income statement: Sales Cost of goods sold Gross profit Selling expenses Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 Administrative expenses Total operating expenses Income from operations Other revenue Income before income tax Income tax expense Net income Required $576,000 264,960 $311,040 $109,440 57,600 $167,040 $144,000 23,040 $167,040 69,120 $97,920 2011 $495,000 247,500 $247,500 $89,100 59,400 $148,500 $99,000 24,750 $123,750 49,500 $74,250 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 the nearest "whole" percentage. Enter all amounts as positive numbers.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Tri-Comic Company
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
Sales
Cost of goods sold
Gross profit
Selling expenses
Net income
20Y2 Amount 20Y2 Percent 20Y1 Amount 20Y1 Percent
$576,000
%
$495,000
%
264,960
247,500
$247,500
$89,100
59,400
$148,500
$99,000
24,750
Administrative expenses
Total operating expenses
Income from operations
Other revenue
Income before income tax
Income tax expense
$311,040
$109,440
57,600
$167,040
$144,000
23,040
$167,040
69,120
$97,920
%
%
%
%
%
%
%
%
%
%
$123,750
49,500
$74,250
%
%
%
%
%
%
%
%
%
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F06c39eee-1f9a-4e99-9392-10a12cd0deda%2Fca1025ce-de54-434b-a5c3-9a8801dafb22%2F3dozfd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Tri-Comic Company
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
Sales
Cost of goods sold
Gross profit
Selling expenses
Net income
20Y2 Amount 20Y2 Percent 20Y1 Amount 20Y1 Percent
$576,000
%
$495,000
%
264,960
247,500
$247,500
$89,100
59,400
$148,500
$99,000
24,750
Administrative expenses
Total operating expenses
Income from operations
Other revenue
Income before income tax
Income tax expense
$311,040
$109,440
57,600
$167,040
$144,000
23,040
$167,040
69,120
$97,920
%
%
%
%
%
%
%
%
%
%
$123,750
49,500
$74,250
%
%
%
%
%
%
%
%
%
%
![For 2012, Tri-Comic Company initiated a sales promotion campaign that included the
expenditure of an additional $16,000 for advertising. At the end of the year, Ahmad
Rashad, the president, is presented with the following condensed comparative income
statement:
Sales
Cost of goods sold
Gross profit
Selling expenses
Tri-Comic Company
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
2012
Administrative expenses
Total operating expenses
Income from operations
Other revenue
Income before income tax
Income tax expense
Net income
Required
$576,000
264,960
$311,040
$109,440
57,600
$167,040
$144,000
23,040
$167,040
69,120
$97,920
20Y1
$495,000
247,500
$247,500
$89,100
59,400
$148,500
$99,000
24,750
$123,750
49,500
$74,250
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 the
nearest "whole" percentage. Enter all amounts as positive numbers.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F06c39eee-1f9a-4e99-9392-10a12cd0deda%2Fca1025ce-de54-434b-a5c3-9a8801dafb22%2F94c4lfs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:For 2012, Tri-Comic Company initiated a sales promotion campaign that included the
expenditure of an additional $16,000 for advertising. At the end of the year, Ahmad
Rashad, the president, is presented with the following condensed comparative income
statement:
Sales
Cost of goods sold
Gross profit
Selling expenses
Tri-Comic Company
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
2012
Administrative expenses
Total operating expenses
Income from operations
Other revenue
Income before income tax
Income tax expense
Net income
Required
$576,000
264,960
$311,040
$109,440
57,600
$167,040
$144,000
23,040
$167,040
69,120
$97,920
20Y1
$495,000
247,500
$247,500
$89,100
59,400
$148,500
$99,000
24,750
$123,750
49,500
$74,250
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 the
nearest "whole" percentage. Enter all amounts as positive numbers.
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