Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: ____________________________________Current Year_____________Prior Year____________ Sales $4,000,000 $3,600,000 Cost of merchandise sold 2,280,000 1,872,000 Selling expenses 600,000 648,000 Administrative Expenses 520,000 360,000 Income tax expense 240,000 216,000 a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round to the nearest whole percentage. b. Comment on the significant changes disclosed by the comparative income statement.
Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: ____________________________________Current Year_____________Prior Year____________ Sales $4,000,000 $3,600,000 Cost of merchandise sold 2,280,000 1,872,000 Selling expenses 600,000 648,000 Administrative Expenses 520,000 360,000 Income tax expense 240,000 216,000 a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round to the nearest whole percentage. b. Comment on the significant changes disclosed by the comparative income statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:
____________________________________Current Year_____________Prior Year____________
Sales $4,000,000 $3,600,000
Cost of merchandise sold 2,280,000 1,872,000
Selling expenses 600,000 648,000
Administrative Expenses 520,000 360,000
Income tax expense 240,000 216,000
a. Prepare an income statement in comparative form, stating each item for both years as a percent
of sales. Round to the nearest whole percentage.
b. Comment on the significant changes disclosed by the comparative income statement.
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