Vertical Analysis of Income Statement For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $21,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement: Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $737,000 $634,000 Cost of merchandise sold 353,760 336,020 Gross profit $383,240 $297,980 Selling expenses $147,400 $120,460 Administrative expenses 81,070 82,420 Total operating expenses $228,470 $202,880 Income from operations $154,770 $95,100 Other revenue 44,220 38,040 Income before income tax expense $198,990 $133,140 Income tax expense 81,070 50,720 Net income $117,920 $82,420 Required: 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. Enter percentages as whole numbers. Enter all amounts as positive numbers. Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1
Vertical Analysis of Income Statement For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $21,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement: Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $737,000 $634,000 Cost of merchandise sold 353,760 336,020 Gross profit $383,240 $297,980 Selling expenses $147,400 $120,460 Administrative expenses 81,070 82,420 Total operating expenses $228,470 $202,880 Income from operations $154,770 $95,100 Other revenue 44,220 38,040 Income before income tax expense $198,990 $133,140 Income tax expense 81,070 50,720 Net income $117,920 $82,420 Required: 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. Enter percentages as whole numbers. Enter all amounts as positive numbers. Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Vertical Analysis of Income Statement
For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $21,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement:
Tri-Comic Company
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
| 20Y2 | 20Y1 |
| Sales | $737,000 | $634,000 |
| Cost of merchandise sold | 353,760 | 336,020 |
| Gross profit | $383,240 | $297,980 |
| Selling expenses | $147,400 | $120,460 |
| Administrative expenses | 81,070 | 82,420 |
| Total operating expenses | $228,470 | $202,880 |
| Income from operations | $154,770 | $95,100 |
| Other revenue | 44,220 | 38,040 |
| Income before income tax expense | $198,990 | $133,140 |
| Income tax expense | 81,070 | 50,720 |
Net income $117,920 $82,420
Required:
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. Enter percentages as whole numbers. Enter all amounts as positive numbers.
| Tri-Comic Company |
| Comparative Income Statement |
| For the Years Ended December 31, 20Y2 and 20Y1 |
| 20Y2 Amount |
20Y2 Percent |
20Y1 Amount |
20Y1 Percent |
| Sales | $737,000 | fill in the blank % | $634,000 | fill in the blank % |
| Cost of merchandise sold | 353,760 | fill in the blank % | 336,020 | fill in the blank % |
| Gross profit | $383,240 | fill in the blank % | $297,980 | fill in the blank % |
| Selling expenses | $147,400 | fill in the blank % | $120,460 | fill in the blank % |
| Administrative expenses | 81,070 | fill in the blank % | 82,420 | fill in the blank % |
| Total operating expenses | $228,470 | fill in the blank % | $202,880 | fill in the blank % |
| Income from operations | $154,770 | fill in the blank % | $95,100 | fill in the blank % |
| Other revenue | 44,220 | fill in the blank % | 38,040 | fill in the blank % |
| Income before income tax expense | $198,990 | fill in the blank % | $133,140 | fill in the blank % |
| Income tax expense | 81,070 | fill in the blank % | 50,720 | fill in the blank % |
| Net income | $117,920 | fill in the blank % | $82,420 | fill in the blank % |
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