4. The following common size income statement are available for GaeaCorporation for the two years ended December 2019, and 201820192018Sales100%100%Cost of sales55%70%Gross profit on sales45%30%Operating(including income taxexpense)expenses20%18%25%12%Net incomeThe trend percentages for sales are as follows:2017130%100%2016What should be the trend percentage for gross profit on sales for 2019A. 58.5%В. 130%С. 150%D. 195%Answer:

Common size analysis of income statement shows each item of income statement as a percentage of…

4. The following common size income statement Corporation for the two years ended December 2019, and 2018 are available for Gaea 2019 2018 Sales 100% 100% Cost of sales 55% 70% Gross profit on sales 45% 30% Operating (including income tax expense) Net income expenses 20% 18% 25% 12% The trend percentages for sales are as follows: 2017 130% 2016 100% What should be the trend percentage for gross profit on sales for 2019 A. 58.5% В. 130% С. 150% D. 195% Answer:

4. The following common size income statement Corporation for the two years ended December 2019, and 2018 are available for Gaea 2019 2018 Sales 100% 100% Cost of sales 55% 70% Gross profit on sales 45% 30% Operating (including income tax expense) Net income expenses 20% 18% 25% 12% The trend percentages for sales are as follows: 2017 130% 2016 100% What should be the trend percentage for gross profit on sales for 2019 A. 58.5% В. 130% С. 150% D. 195% Answer:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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