Comparative INcome Statement
For 2010 Technology company initiate a sales promotion campaign that included the expenditure of an additional $20,000 for advertising. At the end of the year George Wallace, the president with the following condensed comparative statement
O there Technology company
Comparative income statement
For the years ended December31, 2010 and 2009
2010 2009
Sales... $741.000 $612,000
Sales returns and allowances... 14,000 12,000
Net sales... $700,000 $600,000
Cost of good sold... $322,000 $312,000
Gross Profit... $378,000 $288,000
Selling expenses... $154,000 $120,000
Administrative expenses... 70,000 66,000
Total operating expenses... $224,000 $186,000
Income from operation... $154,000 $102,000
Other Income... 28,000 24,000
Income before income tax... $182,000 $126,000
Income tax... 70,000 60,000
Net Income... $112,000 $ 66,000
1.Prepare comparative income statement for two year period, presenting and analysis of each item in relationship to net sales for each of the years. Round to one decimal place.
2. To the extend the data permit, comment on the significant relationships reveled by vertical analysis prepared in (1)
