=+For the Years Ended December 31, 2010 and 2009 2010 2009 Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $714,000 $612,000 Sales returns and allowances . . . . . . . . . . . . 14,000 12,000 ________ ________ Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . $700,000 $600,000 Cost of goods 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 operations . . . . . . . . . . . . . . . . $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 ________ ________ ________ ________ Instructions 1. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to net sales for each of the years. Round to one decimal place.