1. Please do the calculations, prepare a projected multiple step income statement for the year ended dec, 31,2017

2. Prepare the vertical analysis for the income statement for the two years ended dec 31st, 2017 and dec 31st, 2016.

is in its third year of operations The following is the single step income statement for the year ended December 31, 2016 Your sister operates Hercules Parts Company, a mail order boat parts distributorship that Hercules Parts Company Income Statement Year Ended December 31, 2016 Revenues Net sales revenue $600,000 0 Expenses S 420,000 S 38,850 S 20,000.00 S 7,000.00 S 31,200 S 2,800.00 10,000.00 Cost of goods sold Sales salaries expense 3Freight out expense (shipping charges) Advertising Expense Office salaries expense Office supplies expense Interest Expense B Total Expenses $529,850 Net Income 70,150 Your sister had the following inventory balances: 21/01/16 12/31/16 Projected inventory as of 12/31/17 S 38,000.00 S 44,000.00 S 18,000.00 Your sister is considering a proposal to increase net income by offering their sales representatives a salary commission on every unit they sell. This should help increase sales. They also will be able to bargain for a better purchase price for their inventory, control their inventory more efficiently by adopting just-in-time inventory and by shipping all merchandise FOB Shipping Point. Presently, all merchandise is shipped FOB Destination. (Assume that the interest expense will remain the same in 2017). It is estimated that more creative marketing (in 2017) will enable Hercules to have a 20% increase in the Net Sales they had in 2016 by attracting new customers Assume the new shipping terms (in 2017) will cause Hercules to have 15% decrease in the Net Sales they had in 2016. Due to intense negotiations Hercules was able to reduce the cost of goods sold to 65% of Net Sales Assume that Sales Salaries Expense, Advertising Expense, Office Salaries Expense and Office Suppes Expense wil al increase by 10% s me that a sales representatives wi now receive a 5% comission on every sales dollar This will create a new expense that we will call Sales Commission Expense Reauire 1. Prepare a oroiected multole steo income statement for the vear ended Sheeti Sheet2 Sheet3 ADy