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.