The Newman Company Ltd. is in the midst of a promotional campaign to boost sales. In 2010 11 an additional Rs.70,000 was spent on advertising. Presented below are revenue and expense data for the company.
|
2010 11 |
2009 10 |
|
Rs. |
Rs. |
Sales |
8,16,000 |
6,56,500 |
Sales returns and allowances |
16,000 |
6,500 |
Cost of goods sold |
4,00,000 |
3,12,000 |
Selling expenses |
2,00,000 |
1,30,000 |
General expenses |
1,20,000 |
78,000 |
Miscellaneous income |
6,400 |
6,500 |
Income tax |
32,000 |
67,600 |
You are required to prepare a comparative statement for the year 2010 11 and 2009 10 for the company. Also comment on the relationships revealed in the comparative income statements.