arntakeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Calculator Vertical Analysis of Income Statement For 20Y2, Tri-Comic Company Initiated a sales promotion campaign that included the expenditure of an additional $24,000 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 2012 2011 Sales $868,000 434,000 $746000 Cost of merchandise sold 402,840 $343,160 $434,000 $182,280 95,480 $149,200 96,980 $277,760 $246,180 Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations Other revenue Income before income tax expense Income tax expense $156,240 $96,980 52,080 $208,320 44,760 $141,740 59,680 86,800 Net Income $121,520 $82,060 Required: 1. Prepare a comartie income statement for the We-VGA Rerind presenting an analisis each item in relationshinto sales for each takeAssignment/takeAssignmentMain doinvokera&takeAssignmentSessionLocator-&inprogress-false Calculator 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 2012 2011 2011 Amount Percent Amount Percent Sales 5868,000 $746,000 Cost of merchandise sold 434,000 402,840 I Gross profit $434,000 $343,160 Selling expenses 5182,280 $149,200 Administrative expenses 95,480 96.900 Total operating expenses $277,760 $245,180 Income from operations $156,240 596,960 Other revenue 52.000 44,760 Income before income tax expense 4208,320 $141,740 Income tax expense 36,800 59,680 Net income $121,520 $82,060 2. The vertical analysis indicates that the costs other than selling expenses (cost of merchandise sold and administrative expenses) 1023 (hp SCE back & 7 8 9 o Y U P 2 H enter $434,000 $343,160 Gross profit Selling expenses Administrative expenses $12,200 95,480 $149,200 96,980 $277,760 5246.180 Total operating expenses Income from operations $156.240 52,000 596,980 44,760 Other revenue Income before income tax expense $206,320 Income tax expense 86,800 Net Income $121.520 $141,740 59,680 $82,060 2. The vertical analysis indicates that the costs other than selling expenses (cost of merchandise sold and administrative expenses) as a percentage of sales. As a result, net income as a percentage of sales . The sales promotion campaign appears to have been While selling expenses as a percent of sales slightly, the cost was more than made up for by sales Previous Next > hp 7 8 9 R C T 2 F H K V B N M alt ctrl DI