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 expense	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 percentage amounts to nearest whole percent. Using the chart of accounts listed below filling in the correct account titles with the exact wording as listed on the chart.

Young Technologies Inc.
Comparative Income Statement
For the Years Ended December 31, Year 2 and Year 1
	Year 2 Amount	Year 2 Percent	Year 1 Amount	Year 1 Percent
	$	%	$	%
		%		%
	$	%	$	%
		%		%
		%		%
Total expenses	$	%	$	%
		%		%
		%		%
	$	%	$	%

Chart of accounts:

Cash

Gross Profit

Income from Operations

Loss on discontinued operations

Sales

Cost of goods sold

Income from continuing operations

Income tax expenses

Operating expenses

Loses from asset impairment

Sales

Supplies

Selling expenses

Administrative expenses

Cost of merchandise sold

Net Income

Net loss

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

The vertical analysis indicates that the cost of goods sold as a percent of sales _____Decreased or Increased? ______

between the two years. Selling and administrative expense as a percentage of sales ___Decreased or Increased? ____

and income tax expense _____Decreased or Increased? ______ . Overall net income as a percent of sales ___dropped or raised?_______