Income statement data for Starr Canning Corporation are as follows:
|
2009 |
2008 |
|
|
Sales |
$1,400,000 |
$1,200,000 |
|
Cost of goods sold |
850,000 |
730,000 |
|
Selling expenses |
205,000 |
240,000 |
|
General expenses |
140,000 |
100,000 |
|
Income tax expense |
82,000 |
50,000 |
Required
a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales (vertical common size analysis).
b. Comment on the findings in (a).