$35,520 1. Prepare a comparative income statement for the two-year period, prese
ID: 2455011 • Letter: #
Question
$35,520
1. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to net sales for each of the years. Enter percentages as whole numbers. Enter all amounts as positive numbers.
For 2014, Othere Technology Company initiated a sales promotion campaign that included the expenditure of an additional $14,000 for advertising. At the end of the year, George Wallace, the president, is presented with the following condensed comparative income statement:
Sales $521,160 $452,880 Sales returns and allowances 5,160 8,880 Net sales $516,000 $444,000 Cost of goods sold 273,480 253,080 Gross profit $242,520 $190,920 Selling expenses $103,200 $84,360 Administrative expenses 56,760 57,720 Total operating expenses $170,280 $142,080 Income from operations $72,240 $48,840 Other income 30,960 13,320 Income before income tax $103,200 $62,160 Income tax expense 41,280 26,640 Net income $61,920$35,520
1. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to net sales for each of the years. Enter percentages as whole numbers. Enter all amounts as positive numbers.
For 2014, Othere Technology Company initiated a sales promotion campaign that included the expenditure of an additional $14,000 for advertising. At the end of the year, George Wallace, the president, is presented with the following condensed comparative income statement:
Explanation / Answer
$35,520 1. Prepare a comparative income statement for the two-year period, prese
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