Interpretation and Comments 0 The Comparative Income Statement of the company reveals that there has been an increase 16.67%. This shows that the company has made effort to reduce the cost of goods sold. in sales by Rs. 20,000 i.e. , 25% whereas cost of goods sold has increased only by Rs. 10.000 i.e., a) The gross profit of the company has increased by Rs. 10,000 i.c., 50% Indirect expenses has increased at decreasing rate. Hence, the net profit of the company has increased by Rs. 9,000 Kul Rs. which is 60%. From the above, we can say that the overall financial position of the company is good. ILLUSTRATION 2 (Comparative income statement) From the following details, make out a Comparative Income Statement. You are also requin results and give suitable comments. to interprete the Particulars 2009 2010 Rs. Sales 1,20,000 1,50.000 Cost of Goods Sold (70,000) (75,000) 50,000 75,000 Indirect Expenses (20,000) (25,000) 30,000 50,000 (6,000) (10,000) Provision for Tax 24,00p 40.000 Net Profit SIT