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5. Help me selecting the right answer. Thank you

5. Help me selecting the right answer. Thank you

FINANCIAL ACCOUNTING
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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The following income statement information is available for two different companies within the same industry Net Sales Cost of Goods Sold Gross Profit Operating Expenses: Selling Expenses Administrative Expenses Total Operating Expenses Operating Income Other Income and (Expenses): Interest Expense Total Other Income and (Expenses) Income Before Income Taxes Income Tax Expense Net Income Smith $8,100 2,600 5,500 400 600 1,000 4,500 (200) (200) 4,300 1,000 $3,300 Jones $60,000 37,000 23,000 600 800 1,400 21,600 (600) (600) 21,000 5,000 $16,000 When preparing a common-size statement, what is the percentage of gross profit for Smith Company and Jones Company? 67.90% and 38.33% 40.74% and 26.67% 32.10% and 61.67% 55.56% and 36.00%
Transcribed Image Text:The following income statement information is available for two different companies within the same industry Net Sales Cost of Goods Sold Gross Profit Operating Expenses: Selling Expenses Administrative Expenses Total Operating Expenses Operating Income Other Income and (Expenses): Interest Expense Total Other Income and (Expenses) Income Before Income Taxes Income Tax Expense Net Income Smith $8,100 2,600 5,500 400 600 1,000 4,500 (200) (200) 4,300 1,000 $3,300 Jones $60,000 37,000 23,000 600 800 1,400 21,600 (600) (600) 21,000 5,000 $16,000 When preparing a common-size statement, what is the percentage of gross profit for Smith Company and Jones Company? 67.90% and 38.33% 40.74% and 26.67% 32.10% and 61.67% 55.56% and 36.00%
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