Vertical Analysis of Income Statement

For 20Y2, Fielder Industries Inc. initiated a sales promotion campaign that included the expenditure of an additional $40,000 for advertising. At the end of the year, Leif Grando, the president, is presented with the following condensed comparative income statement:

Fielder Industries Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1
	20Y2		20Y1
Sales	$1,300,000		$1,180,000
Cost of goods sold	(682,500)		(613,600)
Gross profit	$617,500		$566,400
Selling expenses	$(260,000)		$(188,800)
Administrative expenses	(169,000)		(177,000)
Total operating expenses	$(429,000)		$(365,800)
Operating income	$188,500		$200,600
Other revenue	78,000		70,800
Income before income tax expense	$266,500		$271,400
Income tax expense	(117,000)		(106,200)
Net income	$149,500		$165,200

Required:

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. Round to one decimal place. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Fielder Industries Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
	20Y2 Amount	20Y2 Percent	20Y1 Amount	20Y1 Percent
Sales	$1,300,000	%	$1,180,000	%
Cost of goods sold	(682,500)	%	(613,600)	%
Gross profit	$617,500	%	$566,400	%
Selling expenses	$(260,000)	%	(188,800)	%
Administrative expenses	(169,000)	%	(177,000)	%
Total operating expenses	$(429,000)	%	$(365,800)	%
Operating income	$188,500	%	$200,600	%
Other revenue	78,000	%	70,800	%
Income before income tax expense	$266,500	%	$271,400	%
Income tax expense	(117,000)	%	(106,200)	%
Net income	$149,500	%	$165,200	%