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 $527,000 $448,000 Cost of merchandise sold 279,310 215,040 Selling expenses 100,130 94,080 Administrative expenses 105,400 85,120 Income tax expense 15,810 22,400 Question Content Area 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 numbers. Innovation Quarter Inc.Comparative Income StatementFor the Years Ended December 31 Current year Amount Current year Percent Previous year Amount Previous year Percent Sales $527,000 fill in the blank 08e5edf2efb0fbc_1% $448,000 fill in the blank 08e5edf2efb0fbc_2% Cost of merchandise sold 279,310 fill in the blank 08e5edf2efb0fbc_3% 215,040 fill in the blank 08e5edf2efb0fbc_4% $- Select - - Select -% $- Select - - Select -% Selling expenses 100,130 fill in the blank 08e5edf2efb0fbc_10% 94,080 fill in the blank 08e5edf2efb0fbc_11% Administrative expenses 105,400 fill in the blank 08e5edf2efb0fbc_12% 85,120 fill in the blank 08e5edf2efb0fbc_13% $- Select - - Select -% $- Select - - Select -% - Select - - Select -% - Select - - Select -% Income tax expense 15,810 fill in the blank 08e5edf2efb0fbc_24% 22,400 fill in the blank 08e5edf2efb0fbc_25% $- Select - - Select -%
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 $527,000 $448,000 Cost of merchandise sold 279,310 215,040 Selling expenses 100,130 94,080 Administrative expenses 105,400 85,120 Income tax expense 15,810 22,400 Question Content Area 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 numbers. Innovation Quarter Inc.Comparative Income StatementFor the Years Ended December 31 Current year Amount Current year Percent Previous year Amount Previous year Percent Sales $527,000 fill in the blank 08e5edf2efb0fbc_1% $448,000 fill in the blank 08e5edf2efb0fbc_2% Cost of merchandise sold 279,310 fill in the blank 08e5edf2efb0fbc_3% 215,040 fill in the blank 08e5edf2efb0fbc_4% $- Select - - Select -% $- Select - - Select -% Selling expenses 100,130 fill in the blank 08e5edf2efb0fbc_10% 94,080 fill in the blank 08e5edf2efb0fbc_11% Administrative expenses 105,400 fill in the blank 08e5edf2efb0fbc_12% 85,120 fill in the blank 08e5edf2efb0fbc_13% $- Select - - Select -% $- Select - - Select -% - Select - - Select -% - Select - - Select -% Income tax expense 15,810 fill in the blank 08e5edf2efb0fbc_24% 22,400 fill in the blank 08e5edf2efb0fbc_25% $- Select - - Select -%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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 | $527,000 | $448,000 | ||
| Cost of merchandise sold | 279,310 | 215,040 | ||
| Selling expenses | 100,130 | 94,080 | ||
| Administrative expenses | 105,400 | 85,120 | ||
| Income tax expense | 15,810 | 22,400 |
Question Content Area
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 numbers.
| Current year Amount | Current year Percent | Previous year Amount | Previous year Percent | |
| Sales | $527,000 | fill in the blank 08e5edf2efb0fbc_1% | $448,000 | fill in the blank 08e5edf2efb0fbc_2% |
| Cost of merchandise sold | 279,310 | fill in the blank 08e5edf2efb0fbc_3% | 215,040 | fill in the blank 08e5edf2efb0fbc_4% |
|
|
$- Select - | - Select -% | $- Select - | - Select -% |
| Selling expenses | 100,130 | fill in the blank 08e5edf2efb0fbc_10% | 94,080 | fill in the blank 08e5edf2efb0fbc_11% |
| Administrative expenses | 105,400 | fill in the blank 08e5edf2efb0fbc_12% | 85,120 | fill in the blank 08e5edf2efb0fbc_13% |
|
|
$- Select - | - Select -% | $- Select - | - Select -% |
|
|
- Select - | - Select -% | - Select - | - Select -% |
| Income tax expense | 15,810 | fill in the blank 08e5edf2efb0fbc_24% | 22,400 | fill in the blank 08e5edf2efb0fbc_25% |
|
|
$- Select - | - Select -% | $- Select - | - Select -% |
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