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

Essay

Revenue and expense data for Young Technologies Inc. are as follows:
​ $\begin{array}{|l|r|r|}\hline &{\text { Year 2 }} &{\text { Year 1 }} \\\hline \text { Sales } & \$ 500,000 & \$ 440,000 \\\hline \text { Cost of goods sold } & 325,000 & 242,000 \\\hline \text { Selling expenses } & 70,000 & 79,200 \\\hline \text { Administrative expenses } & 75,000 & 70,400 \\\hline \text { Income tax expense } & 10,500 & 16,400 \\\hline\end{array}$ ​ (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.