1. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to sales for each of the years. Enter percentages as whole numbers. Enter all amounts as positive numbers.

2. 2. The vertical analysis indicates that the costs other than selling expenses cost of goods sold and administrative expenses (improved/deteriorated)

as a percentage of sales. As a result, net income as a percentage of sales (increased/decreased)

. The sales promotion campaign appears to have been (succesful/unsuccesful)

. While selling expenses as a percent of sales (increased/decreased)

slightly, the (increased/decreased)

cost was more than made up for by (increased/decreased)

sales.

For 2012, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $15,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement: Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 2012 and 2041 20Y2 2011 Sales $534,000 $459,000 Cost of goods sold 267,000 252,450 Gross profit $267,000 $206,550 Selling expenses $101,460 $82,620 Administrative expenses 53,400 55,080 Total operating expenses $154,860 $137,700 Income from operations $112,140 $68,850 Other income 26,700 13,770 Income before income tax $138,840 $82,620 Income tax expense 53,400 32,130 Net Income $85,440 $50,490 Required 1. Prepare a comparative Income statement for the two-year period, presenting an analysis of each item in relationship to sales for each of the years. Enter percentages as whole numbers. Enter all amounts as positive numbers. Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 2012 and 20Y1 Required: 1. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to sales for each of the years. Enter percentages as whole numbers. Enter all amounts as positive numbers. Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 2012 and 2041 2012 Amount 20Y2 Percent 20Y1 Amount 20Y1 Percent Sales $534,000 $459,000 Cost of goods sold 267,000 252,450 Gross profit $267,000 $206,550 Selling expenses 101,460 82,620 Administrative expenses 53,400 % 55,080 Total operating expenses $154,860 $137,700 20240603 % $68,850 13,770 Income from operations $112,140 Other Income 26,700 Income before income tax $138,840 Income tax expense 53,400 Net income $85,440 % $82,620 32,130 % % $50,490 2. The vertical analysis indicates that the costs other than selling expenses (cost of goods sold and administrative expenses) sales. As a result, net income as a percentage of sales The sales promotion campaign appears to have been expenses as a percent of sales slightly, the cost was more than made up for by as a percentage of While selling sales