Income statements for Maltese Corp. for the past two years are as follows:
REQUIRED:

1. Prepare common-size comparative income statements for the two years for Maltese Corp.
2. What observations can you make about the common-size statements? List at least four observations.
3. Prepare comparative income statements for Maltese Corp., including columns for the dollars and for the percentage increase or decrease in each item on the statement.
4. Assume that you are interested in identifying reasons for the changes in selling and administrative expenses and income tax expense. Explain where you would look to find additional information about the change.

Question

Income statements for Maltese Corp. for the past two years are as follows:
  REQUIRED:
  
1. Prepare common-size comparative income statements for the two years for Maltese Corp.
2. What observations can you make about the common-size statements? List at least four observations.
3. Prepare comparative income statements for Maltese Corp., including columns for the dollars and for the percentage increase or decrease in each item on the statement.
4. Assume that you are interested in identifying reasons for the changes in selling and administrative expenses and income tax expense. Explain where you would look to find additional information about the change.

Quizplus · Accepted Answer

The Answer of Income statements for Maltese Corp. for the past two years are as follows:
  REQUIRED:
  
1. Prepare common-size comparative income statements for the two years for Maltese Corp.
2. What observations can you make about the common-size statements? List at least four observations.
3. Prepare comparative income statements for Maltese Corp., including columns for the dollars and for the percentage increase or decrease in each item on the statement.
4. Assume that you are interested in identifying reasons for the changes in selling and administrative expenses and income tax expense. Explain where you would look to find additional information about the change.

Income Statements for Maltese Corp