Fishing Experiences Comparative

Income Statement

For the Years Ended Decemeber 31, 2014 and 2013

20Y6 Percent 20Y5 Percent

Sales 200,000 ? 1 ,000,000 ?

Costs of goods sold -624,000 ? -558,000 ?

Gross profit 576,000 ? 442,000 ?

Selling expenses -120,000 ? -75,000 ?

Administrative expenses -50,000 ? -50,000 ?

Total operating expenses -170,000 ? -125,000 ?

Income from operations 406,000 ? 317,000 ?

Other income 30,000 ? 30,000 ?

Income before income tax 436,000 ? 347,000 ?

Income tax expenses -100,000 ? -90,000 ?

Net income 336,000 ? 257,000 ?

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. Round your percentages to one decimal place. Enter all amounts as positive numbers.

To the extent the data permit, comment on the significant relationships revealed by the vertical analysis prepared in (1).