Question - Revenue and expense data for Reuters Company are as follows:
2011 2010
Administrative expenses $ 24,750 $ 18,000
Cost of goods sold 500,000 375,000
Income tax 11,600 12,000
Net sales 750,000 600,000
Selling expenses 182,250 154,800
(a) Prepare a comparative income statement, with vertical analysis, stating each item for both 2011 and 2010 as a percent of sales.
(b) Comment upon significant changes disclosed by the comparative income statement.