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Question
Revenue and expense data for Young Technologies Inc. are as follows:
| Year 2 | Year 1 | |
| Sales | $500,000 | $440,000 |
| Cost of merchandise sold | 325,000 | 242,000 |
| Selling expenses | 70,000 | 79,200 |
| Administrative expenses | 75,000 | 70,400 |
| Income tax expense | 10,500 | 16,400 |
a. Prepare an income statement in comparative form, stating each item for both years as an amount and as a percent of sales. Round to the nearest whole percent.
b. Comment on the significant changes disclosed by the comparative income statement.
Answer
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