Sparklin Automotive Company
Comparative Income Statements
For Years Ended December 31, 2005 and 2006
(dollars in thousands)
Increase (Decrease)
20052006AmountPercent
Sales (on account)$155,000$168,000$13,0008%
Cost of Goods Sold7875099620$20,87027%
Gross Margin76,25068,380-$7,870-10%
Operating Expenses:
Selling Expenses4,2001,560-$2,640-63%
Administrative Expenses3,5003,000-$500-14%
Total Operating Expenses7,7004,560-$3,140-41%
Net Operating Income68,55063,820-$4,730-7%
Interest Expense20,56519,146-$1,419-7%
Net Income Before Taxes47,98544,674-$3,311-7%
Less Income Taxes (34%)16,31515,189-$1,126-7%
Net Income$31,670$29,485-$2,185-7%