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 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses This Year $7,320,000 4,720,000 2,600,000 Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Members of the company's board of directors are surprised to see that net income increased by only $138,800 when sales increased by $1,756,800. This Year 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).) 1,376,000 709,500 2,085,500 514,500 104,000 $ 410,500 % 0.0 % % % 0.0 % 0.0% % 0.0% Last Year $5,563,200 3,511,000 2,052,200 Last Year % 0.0% 1,075,500 614,000 1,689,500 362,700 91,000 $ 271,700 % % 0.0 % 0.0 % % 0.0 %

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 i
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
Members of the company's board of directors are surprised to see that net income increased by only $138,800 when sales increased
by $1,756,800.
This Year
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).)
***
%
This Year
$7,320,000
4,720,000
2,600,000
%
0.0 %
******
%
%
0.0 %
0.0 %
%
1,376,000
1,075,500
709,500
614,000
2,085,500 1,689,500
514,500
104,000
$ 410,500
0.0 %
Last Year
$5,563,200
3,511,000
2,052,200
Last Year
%
0.0 %
362,700
91,000
$ 271,700
%
%
0.0%
0.0 %
%
0.0%
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 i 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 Members of the company's board of directors are surprised to see that net income increased by only $138,800 when sales increased by $1,756,800. This Year 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).) *** % This Year $7,320,000 4,720,000 2,600,000 % 0.0 % ****** % % 0.0 % 0.0 % % 1,376,000 1,075,500 709,500 614,000 2,085,500 1,689,500 514,500 104,000 $ 410,500 0.0 % Last Year $5,563,200 3,511,000 2,052,200 Last Year % 0.0 % 362,700 91,000 $ 271,700 % % 0.0% 0.0 % % 0.0%
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