Revenue and expense data for Gresham Inc. are as follows:

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Question: Revenue and expense data for Gresham Inc. are as follows: Current Year Previous Year Sa…
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Current Year

Previous Year
Sales $
3,900,000

$3,500,000
Cost of goods sold
2,355,600

1,925,000
Selling expenses
460,200

553,000
Administrative expenses
608,400

441,000
Income tax expense
210,600

196,000
Required:
A. Prepare an income statement in
comparative form, stating each item for both years as a percent of
sales. Round your percentages answers to one decimal place. Enter
all amounts as positive numbers.
B. Comment on the significant
changes disclosed by the comparative income statement.

Income Statement

Prepare an income statement in comparative form, stating each
item for both years as a percent of sales. Round your percentages
answers to one decimal place. Enter all amounts as positive
numbers.

Gresham, Inc.

Comparative Income Statement

For the Years Ended December 31, 20– and 20–

1

Current year

Current year

Previous year

Previous year

2

Amount

Percent

Amount

Percent

3

Sales

$3,900,000.00

$3,500,000.00

4

Cost of goods sold

2,355,600.00

1,925,000.00

5

Gross profit

$1,544,400.00

$1,575,000.00

6

Selling expenses

$460,200.00

$553,000.00

7

Administrative expenses

608,400.00

441,000.00

8

Total operating expenses

$1,068,600.00

$994,000.00

9

Income from operations

$475,800.00

$581,000.00

10

Income tax expense

210,600.00

196,000.00

11

Net income

$265,200.00

$385,000.00

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