Revenue and Expense Data for Young Technologies Inc (A)Prepare an Income Statement in Comparative Form, Stating Each Item

Essay

Revenue and expense data for Young Technologies Inc. are as follows:​​ $\begin{array}{lrr}&\text { Year } 2&\text { Year } 1\\\text { Sales } & \$ 500,000 & \$ 440,000 \\\text { Cost of goods sold } & 325,000 & 242,000 \\\text { Selling expenses } & 70,000 & 79,200 \\\text { Administrative expenses } & 75,000 & 70,400 \\\text { Income tax expense } & 10,500 & 16,400\end{array}$ (a)Prepare an income statement in comparative form, stating each item for both years as an amount and as a percent of sales. Round to the nearest whole percent.
(b)Comment on the significant changes disclosed by the comparative income statement.