Vertical analysis of income statement Revenue and expense data for Innovation Quarter Inc. for two recent...

 

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Vertical analysis of income statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year $4,000,000 Sales $3,600,000 Cost of goods sold Selling expenses Administrative expenses Income tax expense 2,280,000 1,872,000 600,000 648,000 520,000 360,000 240,000 216,000 A. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round to the nearest whole percentage. B. Comment on the significant changes disclosed by the comparative income statement. Vertical analysis of income statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year $4,000,000 Sales $3,600,000 Cost of goods sold Selling expenses Administrative expenses Income tax expense 2,280,000 1,872,000 600,000 648,000 520,000 360,000 240,000 216,000 A. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round to the nearest whole percentage. B. Comment on the significant changes disclosed by the comparative income statement.

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A Innovation Quarter Inc Income Statement For the Years Ended Current Year Previous Year Sales 40000... View the full answer