1. prepare an income statement in comparative form, stating each item for both years as a percent of sales. round your percentages to one decimal place. enter all amounts as positive numbers. question not attempted. score: 0/76 tri-comic company comparative income statement for the years ended december 31, 20y2 and 20y1 1 20y2 20y2 20y1 20y1 2 amount percent amount percent 3 sales $1,500,000.00 $1,250,000.00 4 cost of goods sold 510,000.00 475,000.00 5 gross profit $990,000.00 $775,000.00 6 selling expenses $270,000.00 $200,000.00 7 administrative expenses 180,000.00 156,250.00 8 total operating expenses $450,000.00 $356,250.00 9 income from operations $540,000.00 $418,750.00 10 other income 60,000.00 50,000.00 11 income before income tax $600,000.00 $468,750.00 12 income tax expense 450,000.00 375,000.00 13 net income $150,000.00 $93,750.00

Walsh company manufactures and sells one product. the following information pertains to each of the company’s first two years of operations: variable costs per unit: manufacturing: direct materials $ 25 direct labor $ 12 variable manufacturing overhead $ 5 variable selling and administrative $ 4 fixed costs per year: fixed manufacturing overhead $ 400,000 fixed selling and administrative expenses $ 60,000 during its first year of operations, walsh produced 50,000 units and sold 40,000 units. during its second year of operations, it produced 40,000 units and sold 50,000 units. the selling price of the company’s product is $83 per unit. required: 1. assume the company uses variable costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 2. assume the company uses absorption costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 3. reconcile the difference between variable costing and absorption costing net operating income in year 1.