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A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes This Year $ 7,380,000 4,750,000 2,630,000 1,393,000 703,500 2,096,500 533,500 104,000 $ 429,500 Last Year $ 5,608,800 3,506,000 2,192,800 1,078,500 617,000 1,695,500 407,300 88,000 $ 319,300 Members of the company's board of directors are surprised to see that net income increas- by $1,771,200. Required: 1. Express each year's income statement in common-size percentages. (Round your percer 0.1234 should be entered as 12.3).)

A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes This Year $ 7,380,000 4,750,000 2,630,000 1,393,000 703,500 2,096,500 533,500 104,000 $ 429,500 Last Year $ 5,608,800 3,506,000 2,192,800 1,078,500 617,000 1,695,500 407,300 88,000 $ 319,300 Members of the company's board of directors are surprised to see that net income increas- by $1,771,200. Required: 1. Express each year's income statement in common-size percentages. (Round your percer 0.1234 should be entered as 12.3).)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes This Year $ 7,380,000 4,750,000 2,630,000 Sales Cost of goods sold Gross margin This Year 1,393,000 703,500 2,096,500 533,500 104,000 $ 429,500 Members of the company's board of directors are surprised to see that net income increased by by $1,771,200. 100.0 % 64.4 % 35.6 % Required: 1. Express each year's income statement in common-size percentages. (Round your percentage 0.1234 should be entered as 12.3).) Last Year $ 5,608,800 3,506,000 2,102,800 Last Year 1,078,500 617,000 1,695,500 407,300 88,000 $319,300 100.0 % 62.5% 37.5 %
Transcribed Image Text:A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes This Year $ 7,380,000 4,750,000 2,630,000 Sales Cost of goods sold Gross margin This Year 1,393,000 703,500 2,096,500 533,500 104,000 $ 429,500 Members of the company's board of directors are surprised to see that net income increased by by $1,771,200. 100.0 % 64.4 % 35.6 % Required: 1. Express each year's income statement in common-size percentages. (Round your percentage 0.1234 should be entered as 12.3).) Last Year $ 5,608,800 3,506,000 2,102,800 Last Year 1,078,500 617,000 1,695,500 407,300 88,000 $319,300 100.0 % 62.5% 37.5 %
Members of the company's board of directors are surprised to see that net income increased by only $110,200 when sales increased by $1,771,200 Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e.. 0.1234 should be entered as 12.3).) Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes This Year 100.0 % 64.4 % 35.6 % Tæla % % 0.0 % 35.6 % % 35.6 % Last Year 100.0% 625 % 37.5 % % % 0.0% 37.5% % 37.5 %
Transcribed Image Text:Members of the company's board of directors are surprised to see that net income increased by only $110,200 when sales increased by $1,771,200 Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e.. 0.1234 should be entered as 12.3).) Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes This Year 100.0 % 64.4 % 35.6 % Tæla % % 0.0 % 35.6 % % 35.6 % Last Year 100.0% 625 % 37.5 % % % 0.0% 37.5% % 37.5 %
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