Adams Corporation reported the following operating results for two consecutive years: Required a. Compute the percentage changes in Adams Corporation's income statement components between the two years. (Negative amounts should be indicated by a minus sign. Round your percentage answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).) ADAMS CORPORATION Income Statements Percentage Year 3 Year 2 Change Sales $ 1,295,000 $ 1,002,000 % Cost of goods sold 796,425 601,200 Gross margin 498,575 400,800 Operating expenses 304,500 197,000 Income before taxes 194,075 203,800 Income taxes 61,200 2,700 Net income (loss) $ 132,875 $ 151,100 %
Adams Corporation reported the following operating results for two consecutive years: Required a. Compute the percentage changes in Adams Corporation's income statement components between the two years. (Negative amounts should be indicated by a minus sign. Round your percentage answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).) ADAMS CORPORATION Income Statements Percentage Year 3 Year 2 Change Sales $ 1,295,000 $ 1,002,000 % Cost of goods sold 796,425 601,200 Gross margin 498,575 400,800 Operating expenses 304,500 197,000 Income before taxes 194,075 203,800 Income taxes 61,200 2,700 Net income (loss) $ 132,875 $ 151,100 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Adams Corporation reported the following operating results for two consecutive years:
Required
a. Compute the percentage changes in Adams Corporation's income statement components between the two years. (Negative
amounts should be indicated by a minus sign. Round your percentage answers to 1 decimal place. (i.e., 0.234 should be entered
as 23.4).)
ADAMS CORPORATION
Income Statements
Percentage
Year 3
Year 2
Change
Sales
Cost of goods sold
$ 1,295,000 $ 1,002,000
%
796,425
601,200
Gross margin
498,575
400,800
Operating expenses
304,500
197,000
Income before taxes
194,075
203,800
Income taxes
61,200
2,700
Net income (loss)
$
132,875
$
151,100
%
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