For 2008, Acedia Technology Company initiated a sales promotion campaign that included the expenditure of an additional

Question:

For 2008, Acedia Technology Company initiated a sales promotion campaign that included the expenditure of an additional $10,000 for advertising. At the end of the year, Gordon Kincaid, the president, is presented with the following condensed comparative income statement:

For 2008, Acedia Technology Company initiated a sales promotion

Instructions
1. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to net sales for each of the years. Round to one decimal place.
2. To the extent the data permit, comment on the significant relationships revealed by the vertical analysis prepared in(1).

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Accounting

ISBN: 978-0324401844

22nd Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

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