Prepare the following statements on separate sheets of paper. Then use your statements to provide the information requested below.

a. As the assistant accounting manager for Jefferson Airplane Parts, Inc., construct an income statement with vertical analysis for the first quarter of 2016 from the following information: gross sales, $237,000; sales discounts, $44,500; beginning inventory, Jan. 1, $85,700; ending inventory, March 31, $102,500; net purchases, $76,300; total operating expenses, $107,000; and income tax, $13,450.

Enter the information from the last four lines of your statement as requested below.

Do not enter the percent symbol in your answers. Round percents to the nearest tenth. Enter all amounts as positive numbers.

Jefferson Airplane Parts, Inc.
Income Statement
January 1 to March 31, 2016.
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 2016: gross sales, $293,000; sales discounts, $40,500; beginning inventory, April 1, $102,500; ending inventory, June 30, $97,580; net purchases, $83,720; total operating expenses, $125,500; and income tax, $16,300.

Enter the information from the last four lines of your statement as requested below.

Do not enter the percent symbol in your answers. Round percents to the nearest tenth. Enter all amounts as positive numbers.

Jefferson Airplane Parts, Inc.
Comparative Income Statement
First and Second Quarter, 2016.
						Increase		Increase
						(Decrease)		(Decrease)
		2nd Qtr.		1st Qtr.		Amount		Percent
Operating Expenses		$		$		$		%
Income before Income Tax		$		$		$		%
Income Tax		$		$		$		%
Net Income		$		$		$		%