Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Vertical Analysis of Income Statement For 2012, T-Comic Company initiated a sales promotion campaign that induced the expenditure of an additional $25,000 for advertising. At

image text in transcribed
image text in transcribed
Vertical Analysis of Income Statement For 2012, T-Comic Company initiated a sales promotion campaign that induced the expenditure of an additional $25,000 for advertising. At the end of the year, Lumier, the president, is presented with the following condensed comparative Income statement Tri-Come Company Comparative Income Statement For the Year Ended December 31, 2012 and 2011 2012 2011 5753,000 5648,000 Cost of goods sold 330,050 330,480 Gross profit $414,150 $317.520 Selling expenses $150,600 $123,120 Administrative expenses 82,830 14.240 Total operating expenses $233,430 $207,360 Income from operations $180,720 $110.160 Other income 37,650 19.440 Income before income tax $218,370 $129.500 Income tax expense 90,360 51.840 Net income 5128,010 $77,760 Requiredi 1. Prepare a comparative Income statement for the two-year period, presenting an analysis of each item in relationship to sales for each of the years, Enterpercentages us whole numbers inter all amount positive numbers TH-Comic Company Comparative Income Statement For the Years Ended December 31, 2012 and 20Y: 2012 Amount 2022 Percent 2011 Amount 2011 Percent Sales $750,000 5648,000 Cost of goods sold 338,850 330,480 Gross pro 3414,150 337,520 Selling expenses 150,600 123,120 Administrative expenses 12,830 54,240 Total operating expenses $233,430 $207,360 Income from operations S180,720 $110,160 Other income 37,650 19,440 Income before income tax 5218,370 $129,600 Income tax expense 90,360 51.840 Net income $128.010 $77,760 percent of sales. As a result, net income as a percentage of slightly, the cos 2. The vertical analysis indicates that the cost other than ling expenses (cost of goods sold and administrative expenses sales The promotion campaign appears to have been While sing expenses as a percent of sales more than made up for by

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

8. Do the organizations fringe benefits reflect diversity?

Answered: 1 week ago

Question

7. Do the organizations social activities reflect diversity?

Answered: 1 week ago