Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 2OY1 20Υ2 20Y1 Sales ... $1,500,000 $1,250,000 Cost of goods sold.... Gross profit ..... Selling expenses 510,000 475,000 $ 990,000 $ 270,000 $ 775,000 $ 200,000 Administrative expenses. 180,000 $ 450,000 $ 540,000 156,250 $ 356,250 $ 418,750 Total operating expenses Income from operations Other revenue 60,000 50,000 $ 600,000 $ 468,750 Income before income tax Income tax expense . 450,000 375,000 ... $ 150,000 $ 93,750 Net income ..
Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 2OY1 20Υ2 20Y1 Sales ... $1,500,000 $1,250,000 Cost of goods sold.... Gross profit ..... Selling expenses 510,000 475,000 $ 990,000 $ 270,000 $ 775,000 $ 200,000 Administrative expenses. 180,000 $ 450,000 $ 540,000 156,250 $ 356,250 $ 418,750 Total operating expenses Income from operations Other revenue 60,000 50,000 $ 600,000 $ 468,750 Income before income tax Income tax expense . 450,000 375,000 ... $ 150,000 $ 93,750 Net income ..
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $50,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement:
Please see the attachment for details:
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).
Transcribed Image Text:Tri-Comic Company
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 2OY1
20Υ2
20Y1
Sales ...
$1,500,000
$1,250,000
Cost of goods sold....
Gross profit .....
Selling expenses
510,000
475,000
$ 990,000
$ 270,000
$ 775,000
$ 200,000
Administrative expenses.
180,000
$ 450,000
$ 540,000
156,250
$ 356,250
$ 418,750
Total operating expenses
Income from operations
Other revenue
60,000
50,000
$ 600,000
$ 468,750
Income before income tax
Income tax expense .
450,000
375,000
...
$ 150,000
$ 93,750
Net income ..
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education