question #1

Instructions Income Statement Final Question Instructions Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Sales Cost of goods sold Selling expenses Current Year $ 2,060,000 1,277,200 238,960 329,600 123,600 Previous Year $3,000,000 1,644,000 456,000 360,000 150,000 Administrative expenses Income tax expense A. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round your percentages answers to one decimal place. Enter all amounts as positive numbers. B. Comment on the significant changes disclosed by the comparative income statement Instructions Income Statement Shaded cells have feedback. SCOTCUTE Trovato Quarter in Comparative Income Statement For the Years Ended December 31 Current year Current year Previous year Previous year Amount Percent Amount Percent Sales $2,060,000.00 1,277,200.00 $3,000,000.00 1,644,000.00 4 Cost of goods sold 5 Gross profit $1,356,000.00 $782,800.00 $238,960.00 6 Selling expenses $456,000.00 360,000.00 Administrative expenses 329,600.00 8 Total operating expenses $568,560.00 $816,000.00 9 Income from operations $ 214,240,00 $540,000.00 10 Income tax expense 123,600.00 150,000.00 11 Net income $90,640.00 $390,000.00 Check My Work Next >