14.

Revenue and expense data for Young Technologies Inc. are as follows:

	Year 2		Year 1
Sales	$500,000		$440,000
Cost of goods sold	325,000		242,000
Selling expenses	70,000		79,200
Administrative expenses	75,000		70,400
Income tax expense	10,500		16,400

Required:

a. Prepare an income statement in comparative form, stating each item for both years as an amount and as a percent of sales. Round percentage amounts to nearest whole percent.

Young Technologies Inc.
Comparative Income Statement
For the Years Ended December 31, Year 2 and Year 1
	Year 2 Amount	Year 2 Percent	Year 1 Amount	Year 1 Percent
Total expenses

b. Complete the following regarding the significant changes disclosed by the comparative income statement.

The vertical analysis indicates that the cost of goods sold as a percent of sales between the two years. Selling and administrative expenses as a percentage of sales and income tax expense . Overall, net income as a percent of sales .