Revenue and Expense Data for Bluestem Company Are as Follows

question 144

Essay

Revenue and expense data for Bluestem Company are as follows:
$\begin{array}{lrr}&\text { Year 2}&\text { Year 1}\\\text { Administrative expenses } & \$ \overline{37,000} & \overline{\$ 20,000} \\\text { Cost of goods sold } & 350,000 & 320,000 \\\text { Income tax } & 40,000 & 32,000 \\\text { Sales } & 800,000 & 700,000 \\\text { Selling expenses } & 150,000 & 110,000\end{array}$ 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.

---

Definitions:

Anther

Male structure of a flowering plant where pollen is produced; attached to the flower by the filament.

Filament

End-to-end chains of cells that form as cell division occurs in only one plane; in plants, the elongated stalk of a stamen.

Stamen

The male reproductive organ of a flower, typically consisting of a filament and an anther, which produces pollen.

Angiosperms

Flowering plants that produce seeds enclosed within a fruit; they are the largest and most diverse group in the plant kingdom.