Revenue and Expense Data for Reuters Company Are as Follows

Essay

Revenue and expense data for Reuters Company are as follows: $\begin{array}{lrr}&2017&2016\\\text { Administrative expenses } & \$ 24,750 & \$ 18,000 \\\text { Cost of goods sold } & 500,000 & 375,000 \\\text { Income tax } & 11,600 & 12,000 \\\text { Net sales } & 750,000 & 600,000 \\\text { Selling expenses } & 182,250 & 154,800\end{array}$ ?
(a)Prepare a comparative income statement, with vertical analysis, stating each item for both 2017 and 2016 as a percent of sales.
(b)Comment upon significant changes disclosed by the comparative income statement.