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:

Instructions
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 percentages to one decimal place.)
2. To the extent the data permit, comment on the significant relationships revealed by the vertical analysis prepared in (1).

Transcribed Image Text:

Fielder Industries Inc Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 682,500 613,600 169,000 177,000 78,000 70,800 117,000 100,20