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A comparative income statement is given below for McKenzie Sales, Limited, of Toronto:   McKenzie Sales, Limited Comparative Income Statement   This Year Last Year Sales $ 7,360,000 $ 5,593,600 Cost of goods sold 4,760,000 3,512,000 Gross margin 2,600,000 2,081,600 Selling and administrative expenses:     Selling expenses 1,387,000 1,073,500 Administrative expenses 705,500 609,000 Total expenses 2,092,500 1,682,500 Net operating income 507,500 399,100 Interest expense 96,000 88,000 Net income before taxes $ 411,500 $ 311,100   Members of the company’s board of directors are surprised to see that net income increased by only $100,400 when sales increased by $1,766,400.   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).)

A comparative income statement is given below for McKenzie Sales, Limited, of Toronto:   McKenzie Sales, Limited Comparative Income Statement   This Year Last Year Sales $ 7,360,000 $ 5,593,600 Cost of goods sold 4,760,000 3,512,000 Gross margin 2,600,000 2,081,600 Selling and administrative expenses:     Selling expenses 1,387,000 1,073,500 Administrative expenses 705,500 609,000 Total expenses 2,092,500 1,682,500 Net operating income 507,500 399,100 Interest expense 96,000 88,000 Net income before taxes $ 411,500 $ 311,100   Members of the company’s board of directors are surprised to see that net income increased by only $100,400 when sales increased by $1,766,400.   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).)

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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A comparative income statement is given below for McKenzie Sales, Limited, of Toronto:

 

McKenzie Sales, Limited
Comparative Income Statement
  This Year Last Year
Sales $ 7,360,000 $ 5,593,600
Cost of goods sold 4,760,000 3,512,000
Gross margin 2,600,000 2,081,600
Selling and administrative expenses:    
Selling expenses 1,387,000 1,073,500
Administrative expenses 705,500 609,000
Total expenses 2,092,500 1,682,500
Net operating income 507,500 399,100
Interest expense 96,000 88,000
Net income before taxes $ 411,500 $ 311,100

 

Members of the company’s board of directors are surprised to see that net income increased by only $100,400 when sales increased by $1,766,400.

 

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).)

Members of the company's board of directors are surprised to see that net income increased by only $100,400 when sales increased by $1,766,400. 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 % % % % % % % % % Last Year % % % % % % % % %
Transcribed Image Text:Members of the company's board of directors are surprised to see that net income increased by only $100,400 when sales increased by $1,766,400. 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 % % % % % % % % % Last Year % % % % % % % % %
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