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Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $493,000 $419,000 Cost of goods sold 281,010 213,690 83,810 Selling expenses 83,800 Administrative expenses 93,670 71,230 Income tax expense 14,790 20,950 a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amour nounts as positive numbers. Innovation Quarter Inc Comparative Income Statement For the Years Ended December 31 Current year Amount Current year Percent Previous year Amount Previous year Percent Sales $493,000 $419,000 281,010 213,690 Cost of goods sold Selling expenses 83,810 83,800 96 96 93,670 71,230 Administrative expenses Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Amount Current year Percent Previous year Amount Previous year Percent $493,000 Sales $419,000 281,010 213,690 Cost of goods sold 9% % Selling expenses 83,810 83,800 % 71,230 Administrative expenses 93,670 % % Income tax expense 14,790 20,950 b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 6 percentage points, while selling expenses by 3 by 2 percentage points. Thus, net income as a percent of sales by 3 percentage points. percentage points, and administrative expenses

Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $493,000 $419,000 Cost of goods sold 281,010 213,690 83,810 Selling expenses 83,800 Administrative expenses 93,670 71,230 Income tax expense 14,790 20,950 a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amour nounts as positive numbers. Innovation Quarter Inc Comparative Income Statement For the Years Ended December 31 Current year Amount Current year Percent Previous year Amount Previous year Percent Sales $493,000 $419,000 281,010 213,690 Cost of goods sold Selling expenses 83,810 83,800 96 96 93,670 71,230 Administrative expenses Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Amount Current year Percent Previous year Amount Previous year Percent $493,000 Sales $419,000 281,010 213,690 Cost of goods sold 9% % Selling expenses 83,810 83,800 % 71,230 Administrative expenses 93,670 % % Income tax expense 14,790 20,950 b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 6 percentage points, while selling expenses by 3 by 2 percentage points. Thus, net income as a percent of sales by 3 percentage points. percentage points, and administrative expenses

FINANCIAL ACCOUNTING
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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Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $493,000 $419,000 Cost of goods sold 281,010 213,690 83,810 Selling expenses 83,800 Administrative expenses 93,670 71,230 Income tax expense 14,790 20,950 a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amour nounts as positive numbers. Innovation Quarter Inc Comparative Income Statement For the Years Ended December 31 Current year Amount Current year Percent Previous year Amount Previous year Percent Sales $493,000 $419,000 281,010 213,690 Cost of goods sold Selling expenses 83,810 83,800 96 96 93,670 71,230 Administrative expenses
Transcribed Image Text:Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $493,000 $419,000 Cost of goods sold 281,010 213,690 83,810 Selling expenses 83,800 Administrative expenses 93,670 71,230 Income tax expense 14,790 20,950 a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amour nounts as positive numbers. Innovation Quarter Inc Comparative Income Statement For the Years Ended December 31 Current year Amount Current year Percent Previous year Amount Previous year Percent Sales $493,000 $419,000 281,010 213,690 Cost of goods sold Selling expenses 83,810 83,800 96 96 93,670 71,230 Administrative expenses
Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Amount Current year Percent Previous year Amount Previous year Percent $493,000 Sales $419,000 281,010 213,690 Cost of goods sold 9% % Selling expenses 83,810 83,800 % 71,230 Administrative expenses 93,670 % % Income tax expense 14,790 20,950 b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 6 percentage points, while selling expenses by 3 by 2 percentage points. Thus, net income as a percent of sales by 3 percentage points. percentage points, and administrative expenses
Transcribed Image Text:Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Amount Current year Percent Previous year Amount Previous year Percent $493,000 Sales $419,000 281,010 213,690 Cost of goods sold 9% % Selling expenses 83,810 83,800 % 71,230 Administrative expenses 93,670 % % Income tax expense 14,790 20,950 b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 6 percentage points, while selling expenses by 3 by 2 percentage points. Thus, net income as a percent of sales by 3 percentage points. percentage points, and administrative expenses
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