Prepare a comparative income statement with vertical, Ask an Expert

Accounting

Revenue and expense data for Wilson Company are as follows:

2006 2005

Administrative expenses $ 24,750 $ 18,000

Cost of goods sold 487,500 375,000

Income Tax 15,000 12,000

Net sales 750,000 600,000

Selling expenses 182,500 154,800

(a) Prepare a comparative income statement, with vertical analysis, stating each item for both 2006 and 2005 as a percent of sales.

(b) Comment upon the significant changes disclosed by the comparative income statement.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M977561

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