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a) The income statement comparison for Rush Delivery Company shows the income statement for the current and prior year. RUSH DELIVERY COMPANY Income Statement Comparison

a) The income statement comparison for Rush Delivery Company shows the income statement for the current and prior year.

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RUSH DELIVERY COMPANY Income Statement Comparison Current Year Prior Year (Amounts in thousands) Sales $15,000 $11,000 Cost of goods sold 9,750 7,480 Gross profit $5,250 $3,520 Wages $3,900 $3,080 Utilities 300 250 Repairs 75 325 Selling 225 200 Total expenses $4,500 $3,855 Operating income/(loss) .N .V .V .V Operating income/(loss) % Total assets (investment base) $4,500 $1,500 Return on investment .J .V .V .V Residual income (8% cost of capital)

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