Drill 15 ·
AP Business with Personal Finance: Income Statement (Drill 15) is a practice drill. It contains 5 original questions created by Brian Stewart, a Barron's test prep author with over 20 years of tutoring experience.
Practice reading a comparative income statement: identifying line items, calculating gross and net profit margins, and interpreting changes in profitability across two years. This drill uses an invented company and original figures.
Ridgehaven Outfitters, Inc. is a retailer of outdoor gear. Each year it prepares a comparative income statement for its owners and lenders. The statement below reports two years of results, in thousands of dollars. Two lines have been left unlabeled.
Ridgehaven Outfitters, Inc. -- Comparative Income Statement (in thousands of dollars)
| Line | Item | 2024 | 2025 |
|---|---|---|---|
| 1 | Revenue | 400 | 500 |
| 2 | Cost of Goods Sold | (240) | (300) |
| 3 | Gross Profit | 160 | 200 |
| 4 | Operating Expenses | (110) | (150) |
| 5 | Line 5 | 50 | 50 |
| 6 | Interest and Taxes | (20) | (18) |
| 7 | Line 7 | 30 | 32 |