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.

---

Definitions:

Financial Gains and Losses

The increase (gains) or decrease (losses) in financial resources, often as a result of investments, business operations, or market fluctuations.

Monitor and Control

Processes involved in tracking a project's progress and making adjustments to ensure objectives are met efficiently.

Double-Entry Bookkeeping System

An accounting method that records every financial transaction in at least two accounts, ensuring that the accounting equation (assets = liabilities + owner's equity) remains balanced.

Single-Entry System

An accounting method where each transaction is recorded only once, either as an income or an expense, not used in double-entry bookkeeping.