ACCT Assignment 5

✓ 1. Net income, 2012, 10.6%

For 2012, Blue Buffalo Company initiated a sales promotion campaign that included the expenditure of an additional $60,000 for advertising. At the end of the year, Tamara Wasnuk, the president, is presented with the following condensed comparative income statement:

Instructions

1. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to net sales for each of the years.

2. To the extent the data permit, comment on the significant relationships revealed by the vertical analysis prepared in (1).

(Warren 363-364)

Warren, Carl S. Survey of Accounting, 6th Edition. Cengage Learning, 02/2012. VitalBook file.