Requirement
1. Prepare the corrected comparative income statements for the two-year
period, complete with a heading for the statements. How well did Banta
really perform in 2024 as compared with 2023?
Comparative Income Statements
Banta Tile & Marble Corporation
Income Statements
For the Years Ended November 30, 2024 and 2023
2024
2023
Sales revenue
$ 138,000
$ 125,000
Cost of goods sold:
Beginning inventory
$ 15,000
$ 14,500
Net purchases
78,000
66,000
Cost of goods available
93,000
80,500
Ending inventory
(18,500)
(15,000)
Cost of goods sold
74,500
65,500
Gross profit
63,500
59,500
Operating expenses
31,000
29,000
Net income
$ 32,500
$ 30,500
Income Statements (Corrected)
Years Ended November 30, 2024 and 2023
2024
2023
Sales revenue
138000
125000
Cost of goods sold:
Beginning inventory
15000
14500
Net purchases
78000
66000
Cost of goods available
93000
80500
Ending inventory
-18500
-15000
Cost of goods sold
74500
65500
Gross profit
63500
59500
Operating expenses
31000
29000
Net income
32500
30500