Revenue and expense data for Bluestem Company are as follows: Year 2Year 1Administrative expenses$ 37,000$ 20,000Cost of goods sold350,000320,000Income tax expense 40,00032,000Sales800,000700,000Selling expenses150,000110,000(a)Prepare a comparative income statement, with vertical analysis, stating each item for both years as a percent of sales.(b)Comment upon significant changes disclosed by the comparative income statement.Round percentages to one decimal place.

A comparative Income Statement is the income declaration in which various stages of the income…

Answered: Revenue and expense data for Bluestem…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Revenue and expense data for Bluestem Company are as follows:

	Year 2	Year 1
Administrative expenses	$ 37,000	$ 20,000
Cost of goods sold	350,000	320,000
Income tax expense	40,000	32,000
Sales	800,000	700,000
Selling expenses	150,000	110,000

(a)	Prepare a comparative income statement, with vertical analysis, stating each item for both years as a percent of sales.
(b)	Comment upon significant changes disclosed by the comparative income statement.

Round percentages to one decimal place.

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