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 2041 20Y2 20Y1 $746,000 $642,000 Sales Cost of goods sold Gross profit 350,620 333,840 $395,380 $308,160 Selling expenses $156,660 $128,400 82,060 83,460 Administrative expenses Total operating expenses $238,720 $211,860 Income from operations $156,660 $96,300 Other income 22,380 Income before income tax $179,040 74,600 38,520 $134,820 51,360 $83,460 Income tax expense Net income $104,440 Required:

Answer 1

Gens Tei-Comic Company Comparative lneome Statement Fore the yeans ended December 31,202 and 20y1 Parcatcudans 2012 20VI Pencont 20y2 amount Perccent $q46,000 $250,620 $345 380 Qmount $642000 441. $333840 u8 Sales 001 Coss of goadssold Gross Prokit 529 $308 160 53 Selli ng enpenses Administative 82060 eupenses Total openauting enpenses Income from I56 660 OpercationU2a Oner incomez 12 22 380 3 $38520 Income be fore income Tane $128 400 $1S6 660 211 139/ $83 460 33 $ 238120 32 211860 15 21 96 300 6Y 241 134820 aho ba 9220 51 360 101 74600 Inceme tan enpent lo2 $83460 131 1440 1o4,4০ Not Income