Vertical Analysis of Income Statement For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included...

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Vertical Analysis of Income Statement For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $20,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement: Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $724,000 $623,000 Cost of merchandise sold 354,760 336,420 Gross profit $369,240 $286,580 Selling expenses $144,800 $118,370 Administrative expenses 72,400 74,760 Total operating expenses $217,200 $193,130 Income from operations $152,040 $93,450 Other revenue 43,440 24,920 Income before income tax expense $195,480 $118,370 Income tax expense 79,640 49,840 Net income $115,840 $68,530 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. Enter percentages as whole numbers. Enter all amounts as positive numbers. Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y2 Amount Percent 20Y1 Amount Percent 20Y1 Sales $724,000 100 % $623,000 100 % Cost of merchandise sold 354,760 % 336,420 % Gross profit $369,240 % $286,580 % Selling expenses $144,800 % $118,370 % Administrative expenses 72,400 % 74,760 % Total operating expenses $217,200 % $193,130 % Income from operations $152,040 % $93,450 % Other revenue 43,440 % 24,920 % Income before income tax expense $195,480 % $118,370 % Income tax expense 79,640 % 49,840 % Net income $115,840 % $68,530 % Feedback Vertical Analysis of Income Statement For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $20,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement: Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $724,000 $623,000 Cost of merchandise sold 354,760 336,420 Gross profit $369,240 $286,580 Selling expenses $144,800 $118,370 Administrative expenses 72,400 74,760 Total operating expenses $217,200 $193,130 Income from operations $152,040 $93,450 Other revenue 43,440 24,920 Income before income tax expense $195,480 $118,370 Income tax expense 79,640 49,840 Net income $115,840 $68,530 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. Enter percentages as whole numbers. Enter all amounts as positive numbers. Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y2 Amount Percent 20Y1 Amount Percent 20Y1 Sales $724,000 100 % $623,000 100 % Cost of merchandise sold 354,760 % 336,420 % Gross profit $369,240 % $286,580 % Selling expenses $144,800 % $118,370 % Administrative expenses 72,400 % 74,760 % Total operating expenses $217,200 % $193,130 % Income from operations $152,040 % $93,450 % Other revenue 43,440 % 24,920 % Income before income tax expense $195,480 % $118,370 % Income tax expense 79,640 % 49,840 % Net income $115,840 % $68,530 % Feedback