1. The condensed comparative income statements for Rochelle Corporation follows:

ID: 2376522 • Letter: 1

Question

ROCHELLE CORPORATION

Comparative Income Statements

For the Years Ended December 31, 2005 & 2004

2005 2004

Net Sales $1,600,000 $1,485,200

Costs and Expenses

Cost of goods sold $ 908,200 $ 792,400

Selling expenses 206,200 209,200

Administrative expenses 280,600 231,000

Total costs and expenses $1,449,000 $1,232,600

Income from operations $ 151,800 $ 252,600

Interest expense 50,000 40,000

Income before income taxes $ 101,800 $ 212,600

Income taxes 28,000 70,000

Net income $ 73,000 $ 142,600

Earnings per share $ 1.23 $ 2.38

Required: Calculate the percentage of increase and/or decrease for each category.

sales were increased by 114800 witn increase in 7.729%

cost of goods were increased by115800 der is an increse of 14.6%

selling exp were decreased by 3000 with decrease of 1.43%

admin exp increased by49600 with increase in 21.47%

total cost and exp were increased by 216400 with an increase of 17.55%

income from operations decreased by 100800 with decrease in 39.9%

int exp increased by 10000 with increase in 25%

income before income taxes decreased by 110800 with decrease in 52.11%

income taxes decreased by 42000 with decrease in 60%

net income decreased by 69600 with decrease in 48.80%

earnings per share also decreased by1.15 with decrease in 48.31%

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