2 Redur (a) As the assistant accounting manager for Jefferson Airplane Parts, Inc., construct an income statement with vertical analysis for the first quarter of 2019 from the following information: gross sales, $240,000; sales discounts, $45,500; beginning inventory, Jan. 1, $86,500; ending inventory, March 31, $103,100; net purchases, $76,700; total operating expenses, $108,000; and income tax, $14,650. (Round percentages to one decimal place.) Jefferson Airplane Parts, Inc. Income Statement January 1 to March 31, 2019 Revenue Gross Sales $ % Less: Sales Discounts Net Sales Cost of Goods Sold Merchandise Inventory, Jan. 1 Net Purchases Goods Available for Sale Less: Merchandise Inventory, Mar. 31 Cost of Goods Sold Gross Margin Operating Expenses Income before Taxes Income Tax Net Income $ % (b) 5 Reading E You have just received a report with the second-quarter figures. Prepare a comparative income statement with horizontal analysis for the first and second quarter of 2019: gross sales, $298,000; sales discounts, $41,300; beginning inventory, April 1, $103,100; ending inventory, June 30, $96,580; net purchases, $84,320; total operating expenses, $126,600; and income tax, $16,500. (Round percentages to one decimal place.) Jefferson Airplane Parts, Inc. Comparative Income Statement First and Second Quarter, 2019 2nd Quarter Increase (Decrease) Amount Percent 1st Quarter Revenue Gross Sales $ $ % Less: Sales Discounts Net Sales Cost of Goods Sold Merchandise Inventory, Beginning Net Purchases Goods Available for Sale Less: Merchandise Inventory, Ending Cost of Goods Sold Gross Margin Operating Expenses Income before Income Tax Income Tax % Net Income