of 1 and expense data for Innovation Quarter Inc. for two recent years are as fo
ID: 2330326 • Letter: O
Question
of 1 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 $457,000 278,770 73,120 73,120 13,710 $402,000 225,120 72,360 60,300 16,080 a. Prepare an income tatement 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. Comparative Income For the Years Ended 31 Current year Amount $402,000 Sales Cost of goods sold Gross profit Y Seling expenses 225,120 73,120 Income tax expense Net Income NextExplanation / Answer
Answers
Income Statement
Current Year
Previous Year
Amount
%
Working
Amount
%
Working
Sales
$ 457,000.00
100.0%
(457000/$457,000) x 100
$ 402,000.00
100.0%
(402000/$402,000) x 100
Cost of Goods Sold
$ 278,770.00
61.0%
(278770/$457,000) x 100
$ 225,120.00
56.0%
(225120/$402,000) x 100
Gross Profits
$ 178,230.00
39.0%
(178230/$457,000) x 100
$ 176,880.00
44.0%
(176880/$402,000) x 100
Selling Expenses
$ 73,120.00
16.0%
(73120/$457,000) x 100
$ 72,360.00
18.0%
(72360/$402,000) x 100
Administrative Expenses
$ 73,120.00
16.0%
(73120/$457,000) x 100
$ 60,300.00
15.0%
(60300/$402,000) x 100
Total Operating Expenses
$ 146,240.00
32.0%
(146240/$457,000) x 100
$ 132,660.00
33.0%
(132660/$402,000) x 100
Income from Operations
$ 31,990.00
7.0%
(31990/$457,000) x 100
$ 44,220.00
11.0%
(44220/$402,000) x 100
Income Tax Expense
$ 13,710.00
3.0%
(13710/$457,000) x 100
$ 16,080.00
4.0%
(16080/$402,000) x 100
Net Income
$ 18,280.00
4.0%
(18280/$457,000) x 100
$ 28,140.00
7.0%
(28140/$402,000) x 100
Balance Sheet
Current Year
Previous Year
Amount
%
Working
Amount
%
Working
Current Assets
$ 292,050.00
33.0%
(292050/$885,000) x 100
$ 166,000.00
25.0%
(166000/$664,000) x 100
Property, Plant & Equipment
$ 486,750.00
55.0%
(486750/$885,000) x 100
$ 451,520.00
68.0%
(451520/$664,000) x 100
Intangible Assets
$ 106,200.00
12.0%
(106200/$885,000) x 100
$ 46,480.00
7.0%
(46480/$664,000) x 100
Total Assets
$ 885,000.00
100.0%
(885000/$885,000) x 100
$ 664,000.00
100.0%
(664000/$664,000) x 100
Current Liabilities
$ 177,000.00
20.0%
(177000/$885,000) x 100
$ 92,960.00
14.0%
(92960/$664,000) x 100
Long Term Liabilities
$ 354,000.00
40.0%
(354000/$885,000) x 100
$ 272,240.00
41.0%
(272240/$664,000) x 100
Common Stock
$ 88,500.00
10.0%
(88500/$885,000) x 100
$ 86,320.00
13.0%
(86320/$664,000) x 100
Retained earnings
$ 265,500.00
30.0%
(265500/$885,000) x 100
$ 212,480.00
32.0%
(212480/$664,000) x 100
Total Liabilities & Stockholder's Equity
$ 885,000.00
100.0%
(885000/$885,000) x 100
$ 664,000.00
100.0%
(664000/$664,000) x 100
Income Statement
Current Year
Previous Year
Amount
%
Working
Amount
%
Working
Sales
$ 457,000.00
100.0%
(457000/$457,000) x 100
$ 402,000.00
100.0%
(402000/$402,000) x 100
Cost of Goods Sold
$ 278,770.00
61.0%
(278770/$457,000) x 100
$ 225,120.00
56.0%
(225120/$402,000) x 100
Gross Profits
$ 178,230.00
39.0%
(178230/$457,000) x 100
$ 176,880.00
44.0%
(176880/$402,000) x 100
Selling Expenses
$ 73,120.00
16.0%
(73120/$457,000) x 100
$ 72,360.00
18.0%
(72360/$402,000) x 100
Administrative Expenses
$ 73,120.00
16.0%
(73120/$457,000) x 100
$ 60,300.00
15.0%
(60300/$402,000) x 100
Total Operating Expenses
$ 146,240.00
32.0%
(146240/$457,000) x 100
$ 132,660.00
33.0%
(132660/$402,000) x 100
Income from Operations
$ 31,990.00
7.0%
(31990/$457,000) x 100
$ 44,220.00
11.0%
(44220/$402,000) x 100
Income Tax Expense
$ 13,710.00
3.0%
(13710/$457,000) x 100
$ 16,080.00
4.0%
(16080/$402,000) x 100
Net Income
$ 18,280.00
4.0%
(18280/$457,000) x 100
$ 28,140.00
7.0%
(28140/$402,000) x 100
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