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Answer 1

Answer:

                            McDade Company

                  Comparative Income Statement

       For the Years Ended December 31, 2012 and 2011

                                       2012              2011              Change          %

Sales                      $16,800,000   $15,000,000      $1,800,000      12%

COGS                   ($11,500,000)  ($10,000,000)     $1,500,000      15%

Gross profit             $5,300,000     $5,000,000        $300,000       6%

Selling expenses    ($1,770,000)    ($1,500,000)        $270,000      18%

Adm. expenses      ($1,220,000)    ($1,000,000)        $220,000     22%

Operating exp.     ($2,990,000)   ($2,500,000)        $490,000   19.6%

Operating income   $2,310,000     $2,500,000        ($190,000)    -7.6%

Other revenue           $256,950         $225,000            $31,950    14.2%

EBT                          $2,566,950     $2,725,000        ($158,050)   -5.8%

Income taxes           ($1,413,000)    ($1,500,000)        ($87,000)   -5.8%

Net income                $1,153,950      $1,225,000        ($71,050)   -5.8%