please make sure the answer is correct 100% PR 17-2A Vertical analysis of income statementFor 20Y2, Tri-Comic Company initiated a sales promotion campaign that includedthe expenditure of an additional $50,000 for advertising. At the end of the year, LumiNeer, the president, is presented with the following condensed comparative incomeOBJ. 2statement:(Continued) Tri-Comic CompanyComparative Income StatementFor the Years Ended December 31, 20Y2 and 20Y120Y220Υ1Sales..$1,500,000$1,250,000510,000$ 990,000S 270,000Cost of merchandise sold..475,000$ 775,000$ 200,000156,250$ 356,250$ 418,750Gross profit..Selling expenses..Administrative expenses...Total operating expenses.Income from operations..180,000$ 450,000$ 540,000Other revenue....Income before income tax expense.60,00050,000$ 468,750375,000$ 93,750$ 600,000Income tax expense...450,000Net income...$ 150,000Instructions1. Prepare a comparative income statement for the two-year period, presenting an analysisof each item in relationship to sales for each of the years. Round percentages to onedecimal place.2.To the extent the data permit, comment on the significant relationshipsrevealed by the vertical analysis prepared in (1).

Vertical analysis of income statement computed the percentage of each element included in the…

Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales.. $1,500,000 $1,250,000 Cost of merchandise sold.. Gross profit... Selling expenses...... Administrative expenses.. 510,000 $ 990,000 $ 270,000 180,000 $ 450,000 $ 540,000 60,000 475,000 $ 775,000 $ 200,000 156,250 $ 356,250 $ 418,750 50,000 $ 468,750 375,000 $ 9,750 ........ ***. Total operating expenses... Income from operations... .... Other revenue... ... Income before income tax expense....... Income tax expense..... * $ 600,000 450,000 $ 150,000 Net income... Instructions 1. 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 percentages to one decimal place. 2. To the extent the data permit, comment on the significant relationships revealed by the vertical analysis prepared in (1).

Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales.. $1,500,000 $1,250,000 Cost of merchandise sold.. Gross profit... Selling expenses...... Administrative expenses.. 510,000 $ 990,000 $ 270,000 180,000 $ 450,000 $ 540,000 60,000 475,000 $ 775,000 $ 200,000 156,250 $ 356,250 $ 418,750 50,000 $ 468,750 375,000 $ 9,750 ........ ***. Total operating expenses... Income from operations... .... Other revenue... ... Income before income tax expense....... Income tax expense..... * $ 600,000 450,000 $ 150,000 Net income... Instructions 1. 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 percentages to one decimal place. 2. To the extent the data permit, comment on the significant relationships revealed by the vertical analysis prepared in (1).

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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