by $1,768,800. 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 Last Year
by $1,768,800. 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 Last Year
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 14-1 (Algo) Common-Size Income Statement [LO14-1]
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
$ 7,370,000
4,770,000
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 $90,300 when sales increased
by $1,768,800.
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).)
1,391,000
708,000
2,099,000
501,000
97,000
$ 404,000
%
%
0.0 %
%
%
0.0 %
0.0 %
%
0.0 %
Last Year
$ 5,601,200
3,509,000
2,092,200
Last Year
%
%
0.0 %
1,074,500
612,000
1,686,500
405,700
92,000
$ 313,700
%
%
0.0 %
0.0 %
%
0.0 %](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F39f84bd3-3795-49b0-9b5c-05ffa812ddc6%2Fbe5a5705-a3c7-41fd-9a9f-e19815bb5194%2Fhmy5er_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 14-1 (Algo) Common-Size Income Statement [LO14-1]
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
$ 7,370,000
4,770,000
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 $90,300 when sales increased
by $1,768,800.
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).)
1,391,000
708,000
2,099,000
501,000
97,000
$ 404,000
%
%
0.0 %
%
%
0.0 %
0.0 %
%
0.0 %
Last Year
$ 5,601,200
3,509,000
2,092,200
Last Year
%
%
0.0 %
1,074,500
612,000
1,686,500
405,700
92,000
$ 313,700
%
%
0.0 %
0.0 %
%
0.0 %
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