Revenue and Expense Data for Young Technologies Inc (A)Prepare an Income Statement in Comparative Form, Stating Each Item

question 82

Essay

Revenue and expense data for Young Technologies Inc. are as follows:​​ $\begin{array}{lrr}&\text { Year } 2&\text { Year } 1\\\text { Sales } & \$ 500,000 & \$ 440,000 \\\text { Cost of goods sold } & 325,000 & 242,000 \\\text { Selling expenses } & 70,000 & 79,200 \\\text { Administrative expenses } & 75,000 & 70,400 \\\text { Income tax expense } & 10,500 & 16,400\end{array}$ (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.

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Definitions:

Direct Monetary Costs

Expenses that can be directly quantified in financial terms, such as materials, labor, and overhead costs.

Layoffs

The act of temporarily or permanently reducing a company's workforce due to business needs, economic downturns, or other financial pressures, often leading to job loss for affected employees.

Weeks Of Wages

A measure of compensation or benefits based on the amount an employee would earn over a specified number of weeks.

Voluntary Employee Turnover

Occurs when employees choose to leave their jobs, whether for personal reasons, better employment opportunities, or dissatisfaction with their current roles.