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).