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, $86,300; ending inventory, March 31, $103,300; net purchases, $76,800; total operating expenses, $108,000; and income tax, $14,450. (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)

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, $103,300; 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

			Increase (Decrease)
	2nd Quarter	1st Quarter	Amount	Percent
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	$	$	$	%