Revenue and expense data for Young Technologies Inc. are as follows:

	Year 2	Year 1
Sales	$500,000	$440,000
Cost of goods sold	325,000	242,000
Selling expenses	70,000	79,200
Administrative expenses	75,000	70,400
Income tax expense	10,500	16,400

Required:

(a)

Prepare an income statement in comparative form, stating each item for both years as an amount and as a percent of sales. Round your percentages answers to one decimal place. Enter all amounts as positive numbers.

(b)

Comment on the significant changes disclosed by the comparative income statement.

Prepare an income statement in comparative form, stating each item for both years as an amount and as a percent of sales. Round your percentages answers to one decimal place. Enter all amounts as positive numbers.

Young Technologies Inc.

Comparative Income Statement

For the Years Ended December 31, Year 2 and Year 1

1		Year 2	Year 2	Year 1	Year 1
2		Amount	Percent	Amount	Percent
3	Sales
4	Cost of goods sold
5	Gross profit
6	Selling expenses
7	Administrative expenses
8	Total expenses
9	Income from operations
10	Income tax expense
11	Net income