eBook Show Me How Office 365 Print Item Analysis of profitability The comparative income statement and balance sheet of Cowan Kitchen Counters, Inc. are shown. Cowan Kitchen Counters, Inc. Comparative Income Statement For Years Ended December 31, 20-2 and 20-1 20-2 20-1 Net Sales (all on account) $2,570,000 $2,170,000 Cost of goods sold 1,880,000 1,610,000 Gross profit $690,000 $560,000 Operating expenses 320,000 220,000 Other expense (Interest) 24,200 24,200 Income tax expense 180,000 104,000 Net income $165,800 $211,800 Cash Cowan Kitchen Counters, Inc. Comparative Balance Sheet December 31, 20-2 and 20-1 Government notes Accounts receivable (net) 20-2 20-1 $435,800 $245,000 251,000 251,000 900,000 795,000