**Exercise 17-5 (Algo) Determining Income Effects from Common-Size and Trend Percents** This exercise involves determining income effects from common-size and trend percentages for Roxi Company’s sales, cost of goods sold, and expenses. Below are the respective percentages for the current year and the previous two years. **Common-Size Percents:** - **Sales:** - Current Year: 100.0% - 1 Year Ago: 100.0% - 2 Years Ago: 100.0% - **Cost of Goods Sold:** - Current Year: 63.4% - 1 Year Ago: 61.2% - 2 Years Ago: 57.8% - **Operating Expenses:** - Current Year: 14.3% - 1 Year Ago: 13.8% - 2 Years Ago: 14.1% **Trend Percents:** - **Sales:** - Current Year: 104.6% - 1 Year Ago: 103.4% - 2 Years Ago: 100.0% - **Cost of Goods Sold:** - Current Year: 114.7% - 1 Year Ago: 109.5% - 2 Years Ago: 100.0% - **Operating Expenses:** - Current Year: 106.2% - 1 Year Ago: 101.2% - 2 Years Ago: 100.0% **Task:** Determine the net income over the three-year period. Did the net income increase, decrease, or remain unchanged? To complete the exercise, enter your answers in the tabs below labeled "Change in Net Income" and "Net Income." Consider the changes reflected in the common-size and trend percentages as you analyze Roxi Company’s financial performance over the designated period. ### Exercise 17-5 (Algo) Determining Income Effects from Common-Size and Trend Percents **Objective:** Analyze the effects of common-size and trend percents on Roxi Company's sales, cost of goods sold, and operating expenses. #### Data Table **Common-Size Percents** | Component | Current Year | 1 Year Ago | 2 Years Ago | |---------------------|--------------|------------|-------------| | Sales | 100.0% | 100.0% | 100.0% | | Cost of Goods Sold | 63.4% | 61.2% | 57.8% | | Operating Expenses | 14.3% | 13.8% | 14.1% | **Trend Percents** | Component | Current Year | 1 Year Ago | 2 Years Ago | |---------------------|--------------|------------|-------------| | Sales | 104.6% | 103.4% | 100.0% | | Cost of Goods Sold | 114.7% | 109.5% | 100.0% | | Operating Expenses | 106.2% | 101.2% | 100.0% | #### Task Determine the net income for the current year, one year ago, and two years ago, assuming sales were $100,000 two years ago. Analyze whether net income increased, decreased, or remained unchanged over this period. #### Calculation Table Assuming the sales were $100,000 two years ago, the following calculations are provided: - **Sales:** - 2 Years Ago: $100,000 - **Cost of Goods Sold:** - 2 Years Ago: $57,800 - **Operating Expenses:** - 2 Years Ago: $14,100 - **Net Income:** - 2 Years Ago: $28,100 Complete the calculations for the other years using the provided trends and common-size percents. #### Instructions for Completion Use the fields provided in the question to input your calculated values for each year. Enter all amounts as positive values. Analyze the changes in net income over the three-year period. **Interactive Feature:** - Navigate through sections using the "Change in Net Income" and "Net Income"