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 $741,000 $637,000 Cost of merchandise sold 348,270 337,610 Gross profit $392,730 $299,390 Selling expenses $148,200 $121,030 Administrative expenses 74,100 76,440 Total operating expenses $222,300 $197,470 Income from operations $170,430 $101,920 Other revenue 29,640 31,850 Income before income tax expense $200,070 $133,770 Income tax expense 81,510 50,960 Net income $118,560 $82,810 Required: Question Content Area 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 CompanyComparative Income StatementFor the Years Ended December 31, 20Y2 and 20Y1 20Y2 Amount 20Y2 Percent 20Y1 Amount 20Y1 Percent Sales $741,000 fill in the blank 9dccf109c06504d_1% $637,000 fill in the blank 9dccf109c06504d_2% Cost of merchandise sold 348,270 fill in the blank 9dccf109c06504d_3% 337,610 fill in the blank 9dccf109c06504d_4% Gross profit $392,730 fill in the blank 9dccf109c06504d_5% $299,390 fill in the blank 9dccf109c06504d_6% Selling expenses $148,200 fill in the blank 9dccf109c06504d_7% $121,030 fill in the blank 9dccf109c06504d_8% Administrative expenses 74,100 fill in the blank 9dccf109c06504d_9% 76,440 fill in the blank 9dccf109c06504d_10% Total operating expenses $222,300 fill in the blank 9dccf109c06504d_11% $197,470 fill in the blank 9dccf109c06504d_12% Income from operations $170,430 fill in the blank 9dccf109c06504d_13% $101,920 fill in the blank 9dccf109c06504d_14% Other revenue 29,640 fill in the blank 9dccf109c06504d_15% 31,850 fill in the blank 9dccf109c06504d_16% Income before income tax expense $200,070 fill in the blank 9dccf109c06504d_17% $133,770 fill in the blank 9dccf109c06504d_18% Income tax expense 81,510 fill in the blank 9dccf109c06504d_19% 50,960 fill in the blank 9dccf109c06504d_20% Net income $118,560 fill in the blank 9dccf109c06504d_21% $82,810 fill in the blank 9dccf109c06504d_22% fill in blank in percentage

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 $741,000 $637,000 Cost of merchandise sold 348,270 337,610 Gross profit $392,730 $299,390 Selling expenses $148,200 $121,030 Administrative expenses 74,100 76,440 Total operating expenses $222,300 $197,470 Income from operations $170,430 $101,920 Other revenue 29,640 31,850 Income before income tax expense $200,070 $133,770 Income tax expense 81,510 50,960 Net income $118,560 $82,810 Required: Question Content Area 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 CompanyComparative Income StatementFor the Years Ended December 31, 20Y2 and 20Y1 20Y2 Amount 20Y2 Percent 20Y1 Amount 20Y1 Percent Sales $741,000 fill in the blank 9dccf109c06504d_1% $637,000 fill in the blank 9dccf109c06504d_2% Cost of merchandise sold 348,270 fill in the blank 9dccf109c06504d_3% 337,610 fill in the blank 9dccf109c06504d_4% Gross profit $392,730 fill in the blank 9dccf109c06504d_5% $299,390 fill in the blank 9dccf109c06504d_6% Selling expenses $148,200 fill in the blank 9dccf109c06504d_7% $121,030 fill in the blank 9dccf109c06504d_8% Administrative expenses 74,100 fill in the blank 9dccf109c06504d_9% 76,440 fill in the blank 9dccf109c06504d_10% Total operating expenses $222,300 fill in the blank 9dccf109c06504d_11% $197,470 fill in the blank 9dccf109c06504d_12% Income from operations $170,430 fill in the blank 9dccf109c06504d_13% $101,920 fill in the blank 9dccf109c06504d_14% Other revenue 29,640 fill in the blank 9dccf109c06504d_15% 31,850 fill in the blank 9dccf109c06504d_16% Income before income tax expense $200,070 fill in the blank 9dccf109c06504d_17% $133,770 fill in the blank 9dccf109c06504d_18% Income tax expense 81,510 fill in the blank 9dccf109c06504d_19% 50,960 fill in the blank 9dccf109c06504d_20% Net income $118,560 fill in the blank 9dccf109c06504d_21% $82,810 fill in the blank 9dccf109c06504d_22% fill in blank in percentage

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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Question Content Area

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 CompanyComparative Income StatementFor the Years Ended December 31, 20Y2 and 20Y1

	20Y2 Amount	20Y2 Percent	20Y1 Amount	20Y1 Percent
Sales	$741,000	fill in the blank 9dccf109c06504d_1%	$637,000	fill in the blank 9dccf109c06504d_2%
Cost of merchandise sold	348,270	fill in the blank 9dccf109c06504d_3%	337,610	fill in the blank 9dccf109c06504d_4%
Gross profit	$392,730	fill in the blank 9dccf109c06504d_5%	$299,390	fill in the blank 9dccf109c06504d_6%
Selling expenses	$148,200	fill in the blank 9dccf109c06504d_7%	$121,030	fill in the blank 9dccf109c06504d_8%
Administrative expenses	74,100	fill in the blank 9dccf109c06504d_9%	76,440	fill in the blank 9dccf109c06504d_10%
Total operating expenses	$222,300	fill in the blank 9dccf109c06504d_11%	$197,470	fill in the blank 9dccf109c06504d_12%
Income from operations	$170,430	fill in the blank 9dccf109c06504d_13%	$101,920	fill in the blank 9dccf109c06504d_14%
Other revenue	29,640	fill in the blank 9dccf109c06504d_15%	31,850	fill in the blank 9dccf109c06504d_16%
Income before income tax expense	$200,070	fill in the blank 9dccf109c06504d_17%	$133,770	fill in the blank 9dccf109c06504d_18%
Income tax expense	81,510	fill in the blank 9dccf109c06504d_19%	50,960	fill in the blank 9dccf109c06504d_20%
Net income	$118,560	fill in the blank 9dccf109c06504d_21%	$82,810	fill in the blank 9dccf109c06504d_22%

fill in blank in percentage

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Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1
	20Y2	20Y1
Sales	$741,000	$637,000
Cost of merchandise sold	348,270	337,610
Gross profit	$392,730	$299,390
Selling expenses	$148,200	$121,030
Administrative expenses	74,100	76,440
Total operating expenses	$222,300	$197,470
Income from operations	$170,430	$101,920
Other revenue	29,640	31,850
Income before income tax expense	$200,070	$133,770
Income tax expense	81,510	50,960
Net income	$118,560	$82,810