Question

9. Revenue and expense data for Tower Technologies are as follows: 20121 2011 Sales $500,000 $440,000 Cost of goods sold 325,

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer :-

1)

Comparative Income Statement

2012

Amount

2012

%

2011

Amount

2011

%

Sales $500,000 100% $440,000 100%
Cost of goods sold $325,000 65% $242,000 55%
Gross Profit ( sales - Cost of good sold) $175,000 35% $198,000 45%
Operating Expense :
Selling Expense $70,000 14% $79,200 18%
Administrative Expenses $75,000 15% $70,400 16%
Total Operating Expenses $145,000 29% $149,600 34%
Income from operations( Gross Profit - Total Operating expenses) $30,000 6% $48,400 11%
Income tax expense $25,000 5% $26,400 6%
Net Income ( Income from operations - Income taxes Expense) $5,000 1% $22,000 5%

Note :-

Precent are calculated on the basis of sales for that year.

Ex - 2012% of Cost of Good sold =( Cost of good sold Amount in 2012 / Sales in 2012) × 100

Like that all Percentage is calculated.

2)In 2012 the cost of goods sold is increased by 10% as compared to 2011 which result in decrease of Net Income by 4% in 2012. In 2012 , The selling Expense is decrease by 4% and Administrative expenses is decrease by 1% .

Which show that the changes in Net income reason was increased in Cost of good sold by 10% .

Add a comment
Know the answer?
Add Answer to:
9. Revenue and expense data for Tower Technologies are as follows: 20121 2011 Sales $500,000 $440,000...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Revenue and expense data for Young Technologies Inc. are as follows: Year 2 Year 1 Sales...

    Revenue and expense data for Young Technologies Inc. are as follows: Year 2 Year 1 Sales $500,000 $440,000 Cost of goods sold 325,000 242,000 Selling expenses 70,000 79,200 Administrative expenses 75,000 70,400 Income tax expense 10,500 16,400 Required: a. Prepare an income statement in comparative form, stating each item for both years as an amount and as a percent of sales. Round percentage amounts to nearest whole percent. Young Technologies Inc. Comparative Income Statement For the Years Ended December 31,...

  • Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current...

    Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $ 3,900,000 $3,500,000 Cost of goods sold 2,355,600 1,925,000 Selling expenses 460,200 553,000 Administrative expenses 608,400 441,000 Income tax expense 210,600 196,000 A. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round your percentages answers to one decimal place. Enter all amounts as positive numbers. B. Comment on the significant...

  • Vertical Analysis of Income Statement Revenue and expense data for Rogan Technologies Co. are as follows:...

    Vertical Analysis of Income Statement Revenue and expense data for Rogan Technologies Co. are as follows: 20Y8 2017 $482,000 $429,000 Sales Cost of goods sold 255,460 197,340 Selling expenses 94,380 Administrative expenses 91,580 96,400 14,460 81,510 21,450 Income tax expense Hide a. Prepare an income statement in comparative form, stating each item for both 2048 and 2047 as a percent of sales. If required, round all amounts as positive numbers. Rogan Technologies Co. Comparative Income Statement For the Years Ended...

  • P 8-2 Income statement data for Starr Canning Corporation are as follows: 2010 2011 ales Cost...

    P 8-2 Income statement data for Starr Canning Corporation are as follows: 2010 2011 ales Cost of goods sold Selling expenses General expenses Income tax expense $1,200,000 730,000 240,000 100,000 50,000 $1,400,000 850,000 205,000 140,000 82,000 Required a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales (vertical common-size analysis). b. Comment on the findings in (a).

  • Instructions Income Statement Shaded cell Revenue and expense data for Innovation Quarter Inc. for two recent...

    Instructions Income Statement Shaded cell Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round your percent one decimal place. Enter all amounts as positive numbers. Current Year Previous Year Sales $ 2.920,000 $2.150,000 Cost of goods sold 1,769,520 1,182,500 Question not attempted. Selling expenses 332,880 322.500 Innovation Quarter Inc. Administrative expenses 449,680 279,500 Comparative Income...

  • question #1 Instructions Income Statement Final Question Instructions Revenue and expense data for Innovation Quarter Inc....

    question #1 Instructions Income Statement Final Question Instructions Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Sales Cost of goods sold Selling expenses Current Year $ 2,060,000 1,277,200 238,960 329,600 123,600 Previous Year $3,000,000 1,644,000 456,000 360,000 150,000 Administrative expenses Income tax expense A. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round your percentages answers to one decimal place. Enter all amounts...

  • Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:        Current...

    Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:        Current Year        Previous Year Sales $571,000 $480,000 Cost of goods sold 308,340 220,800 Selling expenses 102,780 105,600 Administrative expenses 114,200 91,200 Income tax expense 17,130 24,000 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 Statement...

  • Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent...

    Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: 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 goods sold Selling expenses Administrative expenses Income tax expense a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to...

  • Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent...

    Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Previous Year Year $429,000 $378,000 270,270 211,680 64,350 68,040 Sales Cost of goods sold Selling expenses Administrative expenses Income tax expense 68,640 56,700 8,580 15,120 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. Innovation Quarter Inc. Comparative Income Statement For...

  • Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as...

    Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year $446,000 Sales $397,000 Cost of goods sold 276,520 222,320 66,900 Selling expenses 71,460 Administrative expenses 75,820 59,550 Income tax expense 15,880 8,920 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...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT