Prepare a comparative common-size income statement for Sunny Day Designs using the 2012 and 2011 data of Exercise 14-25B. To an investor, how does 2012 compare with 2011? Explain your reasoning.
Data of Exercise 14-25B
Sunny Day Designs
Comparative Income Statement
Years Ended December 31, 2012 and 2011
Net sales revenue........................................................................ $540,000.............$450,000
Expenses:
Cost of goods sold..................................................................... $243,000.............$225,000
Selling and general expenses.........................................................97,200................90,000
Other expense ...............................................................................32,400................22,500
Total expenses..............................................................................372600................337500
Net income.................................................................................$167,400.............$112,500