a) | ||||
Innovation Quarter Inc. | ||||
Comparative Income Statement | ||||
For the Years Ended December 31. | ||||
Current Year Amount | Current Year Percent | Previous Year Amount | Previous Year Percent | |
Sales ($405,000/$405,000*100); ($352,000/$352,000*100) | $405,000 | 100% | $352,000 | 100% |
Less: Cost of Goods Sold ($275,400/$405,000*100); ($221,760/$352,000*100) | $275,400 | 68.0% | $221,760 | 63.0% |
Gross Profit ($129,600/$405,000*100); ($130,240/$352,000*100) | $129,600 | 32.0% | $130,240 | 37.0% |
Less: Selling Expenses ($52,650/$405,000*100); ($52,800/$352,000*100) | $52,650 | 13.0% | $52,800 | 15.0% |
Less: Administrative Expenses ($56,700/$405,000*100); ($45,760/$352,000*100) | $56,700 | 14.0% | $45,760 | 13.0% |
Total Operating Expenses ($109,350/$405,000*100); ($98,560/$352,000*100) | $109,350 | 27.0% | $98,560 | 28.0% |
Income from Operations ($20,250/$405,000*100); ($31,680/$352,000*100) | $20,250 | 5.0% | $31,680 | 9.0% |
Less: Income Tax Expense ($8,100/$405,000*100); ($14,080/$352,000*100) | $8,100 | 2.0% | $14,080 | 4.0% |
Net Income ($12,150/$405,000*100); ($17,600/$352,000*100) | $12,150 | 3.0% | $17,600 | 5.0% |
b) | ||||
Cost of Goods sold as a percent of sales Increases by 5 percentage points (63% - 68% = 5%) from previous year to current year. | ||||
While selling expenses Decreases by 2 percentage points (15% - 13% = 2%) from previous year to current year. | ||||
Administrative expenses Increases by 1 percenage points (13% - 14% = 1%) from previous year to current year. | ||||
Thus, net income as a percent of sales Decreases by 2 percentage points (5% - 3%) from previous year to current year. |
just need help figuering out the percentage and part b Vertical Analysis of Income Statement Revenue...
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 $404,000 $351,000 Cost of goods sold 254,520 203,580 Selling expenses 60,600 59,670 Administrative expenses 64,640 52,650 Income tax expense 8,080 14,040 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...
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 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 years are as follows: Current Year Previous Year Sales $543,000 $489,000 Cost of goods sold 298,650 244,500 Selling expenses 97,740 97,800 Administrative expenses 103,170 88,020 Income tax expense 16,290 24,450 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...
Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year $551,000 $479,000 Sales Cost of goods sold 347,130 277,820 Selling expenses 82,650 Administrative expenses 88,160 81,430 71,850 19,160 Income tax expense 11,020 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...
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 $466,000 $424,000 Cost of goods sold 316,880 267,120 Selling expenses 60,580 63,600 Administrative expenses 65,240 55,120 Income tax expense 9,320 16,960 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...
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 one decimal place. Enter all amounts as positive numbers. $573,000 360,990 85,950 91,680 11,460 $516,000 288,960 92,880 77,400 20,640 Innovation...
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...
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 $605,000 $520,000 Cost of goods sold 363,000 286,000 Selling expenses 96,800 93,600 Administrative expenses 102,850 83,200 Income tax expense 18,150 20,800 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...
17-3 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 $509,000 $433,000 Cost of goods sold 300,310 225,160 Selling expenses 81,440 82,270 Administrative expenses 91,620 73,610 Income tax expense 15,270 21,650 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....