For 2014, Fielder Industries Inc. initiated a sales promotion campaign that included the expenditure of an additional $40,000 for advertising. At the end of the year, Leif Grando, the president, is presented with the following condensed comparative income statement: Instructions 1.Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to net sales for each of the years. Round to one decimal place.

comparative income statements 2014 and 2013

Sales	1,325,000	1,200,000
sales returns amd allowances	25,000	20,000
Net sales	1,300,000	1,800,000
Cost of Goods sold	682,500	613,600
Gross Profit	617,500	566,400
Selling Expenses	260,000	188,000
Administrative Expenses	169,000	177,000
Total Operating Expenses	429,000	365,800
Income from operations	188,500	200,600
Other Income	78,000	70,800
Income before income tax	266,500	271,400
Income tax expense	117,000	106,200
Net Income	149,500	165,200

2014 2013