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Excercise 9-5 - $25,900 $20,000 $5,900 29.5 Selling...

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Exercise 9-5 Name: Section: Score: 100% Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. A red asterisk (*) will appear in the column to the right of an incorrect answer. a. GRENDEL IMAGES COMPANY Comparative Income Statement For the Years Ended December 31, 2010 and 2009 2010 2009 Increase (Decrease) Amount Amount Amount Percent Sales $196,000 $160,000 $36,000 22.5% Cost of goods sold 170,100 140,000 30,100 21.5% Gross profit
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Unformatted text preview: $25,900 $20,000 $5,900 29.5% Selling expenses $12,200 $10,000 $2,200 22.0% Administrative expenses 9,750 8,000 1,750 21.9% Total operating expenses $21,950 $18,000 $3,950 21.9% Income before income tax $3,950 $2,000 $1,950 97.5% Income tax expense 2,000 1,000 1,000 100.0% Net income $1,950 $1,000 $950 95.0% b. Instructions Net income increased because sales increased at a greater percentage rate than did cost of goods sold and operating expenses....
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