Listed below are the results of Messier Chocolate's operations for 2011 and 2012. (Assume 5,000 shares of outstanding stock for both years.)

Required:
1. Prepare a comparative income statement for Messier Chocolate for the years ended December 31, 2012, and 2011. Be sure to include figures for gross margin, operating income, income before taxes, net income, and earnings per share.
2. Interpretive Question: What advice would you give Messier Chocolate to improve its profitability for the year2013?

Transcribed Image Text:

2012 2011 Sales Utilities expenses Employee salaries.. Advertising expenses. ...* ncome tax expense-... Interest expense. Cost of goods soldna... Interest revenue $530,000 18,000 185,000 25,000 20,100 45,000 210,000 20,000 $625,000 12,500 170,000 40,000 72,750 25,000 155,000 20,000