Question: 1. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round your percentages to one decimal
1. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round your percentages to one decimal place. Enter all amounts as positive numbers.
| Indigo Company |
| Comparative Income Statement |
| For the Years Ended December 31, 2016 and 2015 |
| 1 |
| 2016 | 2016 | 2015 | 2015 |
| 2 |
| Amount | Percent | Amount | Percent |
| 3 | Sales | $820,000.00 | $600,000.00 | ||
| 4 | Cost of goods sold | 311,600.00 | 240,000.00 | ||
| 5 | Gross profit | $508,400.00 | $360,000.00 | ||
| 6 | Selling expenses | $164,000.00 | $108,000.00 | ||
| 7 | Administrative expenses | 57,400.00 | 54,000.00 | ||
| 8 | Total operating expenses | $221,400.00 | $162,000.00 | ||
| 9 | Income from operations | $287,000.00 | $198,000.00 | ||
| 10 | Other income | 65,600.00 | 48,000.00 | ||
| 11 | Income before income tax | $352,600.00 | $246,000.00 | ||
| 12 | Income tax expense | 246,000.00 | 180,000.00 | ||
| 13 | Net income | $106,600.00 | $66,000.00 |
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