Revenue and Expense Data for Bluestem Company Are as Follows

question 141

Essay

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

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Definitions:

Homogeneity

The quality or state of being all the same or all of the same kind, often referring to consistency within groups or datasets.

Universality

The ability to be applied or relevant in all cases, or the notion that certain concepts hold true across all cultures and situations.

Schizophrenia

A psychological condition marked by unusual conduct, peculiar speech, and a diminished capacity to grasp reality.

Waxy Flexibility

A state wherein a person’s limbs and posture can be “moulded” into different positions as if the person were made of wax. Occasionally seen in schizophrenia.