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:

Question Content Area

a. Prepare an income statement in comparative form, stating each item for both years as an amount and as a percentage of sales. Round percentage amounts to the nearest whole percent.

	Year 2 Amount	Year 2 Percent	Year 1 Amount	Year 1 Percent
CashGross profitIncome from operations loss on discontinued operations sales	$- Select -	- Select -%	$- Select -	- Select -%
Cost of goods operations sales profitIncome from continuing operations income tax expenseOperating expenses	- Select -	- Select -%	- Select -	- Select -%
Gross sold gross on discontinued operations incomeprofitsoperations losses from asset impairmentSalesSupplies	$- Select -	- Select -%	$- Select -	- Select -%
CashGross profitIncome from operationsIncome tax expenseSelling expenses	- Select -	- Select -%	- Select -	- Select -%
Administrative expensesCashGross profit income tax expenseOperating expenses	- Select -	- Select -%	- Select -	- Select -%
Total expenses	$fill in the blank dc5eb4f7202bfe5_26	fill in the blank dc5eb4f7202bfe5_27%	$fill in the blank dc5eb4f7202bfe5_28	fill in the blank dc5eb4f7202bfe5_29%
CashCost of merchandise soldIncome from operationsSalesSupplies	- Select -	- Select -%	- Select -	- Select -%
CashCost of goods sold gross profit income tax expense sales	- Select -	- Select -%	- Select -	- Select -%
Net income loss	$- Select -	- Select -%	$- Select -	- Select -%

Question Content Area

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

profit income sold gross

between the two years. Selling and administrative expenses as a percentage of sales

profit income

and income tax expense

decreased increased

. Overall net income as a percent of sales

dropped raised decreased increased decreased increased expenses decreased increased expense sales income

.