What is the - Sales Current Year, Cost of Goods Sold Previous Year, Net Income P
ID: 2534263 • Letter: W
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What is the - Sales Current Year, Cost of Goods Sold Previous Year, Net Income Previous Year, Total Expenses Current Year, and Income from Operations Previous Year
EX 14-1 Vertical analysis of income statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: obj. 2 Current Year Previous Year 4,000,000 $3 Sales Cost of goods sold Selling expenses Administrative expenses Income tax expense 2,280,000 600,000 520,000 $3,600,000 1,872,000 648,000 240,000360,000 216,000 A. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. (Round to the nearest whole percentage.) B. Comment on the significant changes disclosed by the comparative income statement.Explanation / Answer
INCOME STATEMENT current year % of sales previous year % of sales sales 4000000 100% 3600000 100% Expenses: COGS 2280000 57% 1872000 52% selling exp 600000 15% 648000 18% admin exp 520000 13% 360000 10% income tax exp 240000 6% 216000 6% Total expenses 3640000 91% 3096000 86% Net Income 360000 9% 504000 14% sales current year 4000000 Cost of goods sold previous year 1872000 Net Income previous year 504000 Total Expenses current year 3096000 Income from operations previous year = sales - COGS 3600000-1872000 = $ 1,728,000
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