Question

Question 8 – Chapter 13/14

Comparative Income Statements
Consider the following income statement data from the Ross Company:

	2013	2012
Sales revenue	$525,000	$450,000
Cost of goods sold	336,000	279,000
Selling expenses	105,000	99,000
Administrative expenses	60,000	54,000
Income tax expense	7,800	5,400

Prepare a comparative income statement, showing increases and decreases in dollars and in percentages. (Round to one decimal point.)

ROSS COMPANY Comparative Income Statements
		2013		2012		Increase (Decrease)		Percent Change
Sales Revenue		$Answer		$Answer		$Answer		Answer %
Cost of Goods Sold		Answer		Answer		Answer		Answer %
Answer
Answer	Answer		Answer		Answer %
Answer

Selling Expenses	Answer	Answer	Answer	Answer %
Administrative Expenses	Answer	Answer	Answer	Answer %
Total	Answer	Answer	Answer	Answer %
Income before Income Taxes	Answer	Answer	Answer	Answer %
Answer

Answer	Answer	Answer	Answer %
Answer

$Answer

$Answer

$Answer

Answer %

Answer 1

Prepare a comparative income statement, showing increases and decreases in dollars and in percentages. (Round to one decimal point.)

	2013	2012	Increase (decrease)	Percentage
Sales revenue	525000	450000	75000	16.7%
Cost of goods sold	336000	279000	57000	20.4%
Gross profit	189000	171000	18000	10.5%
Selling expense	105000	99000	6000	6.1%
Administrative expenses	60000	54000	6000	11.1%
Total	165000	153000	12000	7.8%
Income before tax	24000	18000	6000	33.3%
Income tax expense	7800	5400	2400	44.4%
Net income	16200	12600	3600	28.6%