Vertical Analysis of Income StatementRevenue and expense data for Innovation Quarter Inc. for two recent years are as follows:Current YearPrevious YearSalesCost of merchandise soldSelling expensesAdministrative expensesIncome tax expenseSalesa. 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 amounts as positive numbers.Innovation Quarter Inc.Comparative Income StatementFor the Years Ended December 31Current year Amount Current year Percent$388,000 100248,320Cost of merchandise soldGross profitSelling expensesAdministrative expensesTotal operating expensesIncome from operationsIncome tax expense$388,000248,32054,32062,0807,760Net income$353,000208,27056,48052,95014,120$54,32062,0807,760%%%%%%%%%Previous year Amount Previous year Percent$353,000 100 ✓ %208,270$56,48052,95014,120%%%%%%%%

Income statement is the financial statement that records the revenue and expenses of the business…

Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales Cost of merchandise sold Selling expenses Administrative expenses Income tax expense Sales Cost of merchandise sold Gross profit ✓ Selling expenses 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 amounts as positive number Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Amount Current year Percent 100 % $388,000 248,320 Administrative expenses Total operating expenses Income from operations Income tax expense Net income $388,000 248,320 54,320 62,080 7,760 ✓ $353,000 208,270 56,480 52,950 14,120 믐 54,320 62,080 7,760 % % % % % % % % Previous year Amount Previous year Percent 100% $353,000 208,270 56,480 52,950 14,120 % % % % % % % %

Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales Cost of merchandise sold Selling expenses Administrative expenses Income tax expense Sales Cost of merchandise sold Gross profit ✓ Selling expenses 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 amounts as positive number Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Amount Current year Percent 100 % $388,000 248,320 Administrative expenses Total operating expenses Income from operations Income tax expense Net income $388,000 248,320 54,320 62,080 7,760 ✓ $353,000 208,270 56,480 52,950 14,120 믐 54,320 62,080 7,760 % % % % % % % % Previous year Amount Previous year Percent 100% $353,000 208,270 56,480 52,950 14,120 % % % % % % % %

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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