Revenue and Expense Data for Bluestem Company Are as Follows

question 51

Short Answer

Revenue and expense data for Bluestem Company are as follows:
(a) Prepare a comparative income statement, with vertical analysis, stating each item for both years as a percent of sales.
(b) Comment upon significant changes disclosed by the comparative income statement.
Round percentages to one decimal place.

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Definitions:

External Financing

External financing involves acquiring capital from outside sources to fund business operations and investments, such as through loans, issuing equity, or other forms of financial support from outside the company.

Total Production Costs

The combined costs of materials, labor, and overhead incurred in producing goods.