Comparative Income Statement Preparation
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Listed below are the results of Rulon Candies' operations for 2005 and 2006. (Assume 4,000 shares of outstanding stock for both years.)
2006 2005
Sales $300,000 $350,000
Utilities expenses 15,000 8,500
Employee salaries 115,000 110,000
Advertising expenses 10,000 20,000
Income tax expense 9,000 36,500
Interest expense 25,000 15,000
Cost of goods sold 115,000 85,000
Interest revenue 10,000 10,000
Prepare a comparative income statement for Rulon Candies, Inc., for the years ended December 31, 2006, and 2005. Be sure to include figures for gross margin, operating income, income before taxes, net income, and earnings per share.
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Solution Summary
The solution explains how to prepare a comparative income statement. It is provided in an attached Excel file.
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