Q1) Revenue and expense data for Malden Company are given below:
|
|
2006
|
2005
|
|
Administrative expenses
|
$ 37,000
|
$ 20,000
|
|
Cost of goods sold
|
400,000
|
320,000
|
|
Income tax
|
40,000
|
32,000
|
|
Net sales
|
900,000
|
700,000
|
|
Selling expenses
|
190,000
|
110,000
|
(a) Make a comparative income statement, with vertical analysis, stating each item for both 2006 and 2005 as percent of sales.
b) Comment upon important changes revealed by comparative income statement.