Common-Size Income StatementsConsider the following income statement data from the Ross Company: 20132012Sales revenue$525,000$450,000Cost of goods sold336,000279,000Selling expenses107,000101,000Administrative expenses62,00056,000Income tax expense9,8007,400Prepare common-size income statements for each year. Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). ROSS COMPANYCommon-Size Income Statements(Percent of Sales Revenue) 20132012Sales RevenueAnswer Answer Cost of Goods SoldAnswer Answer AnswerGross Profit on SalesOperating ExpensesIncome Tax ExpenseNet Income Answer Answer AnswerGross Profit on SalesOperating ExpensesIncome Tax ExpenseNet Income Selling ExpensesAnswer Answer Administrative ExpensesAnswer Answer TotalAnswer Answer Income before Income TaxesAnswer Answer AnswerGross Profit on SalesOperating ExpensesIncome Tax ExpenseNet Income Answer Answer AnswerGross Profit on SalesOperating ExpensesIncome Tax ExpenseNet Income Answer Answer

Comparative balance sheet used to compare the financial statement of two or more periods. It is…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Common-Size Income Statements
Consider the following income statement data from the Ross Company:

	2013	2012
Sales revenue	$525,000	$450,000
Cost of goods sold	336,000	279,000
Selling expenses	107,000	101,000
Administrative expenses	62,000	56,000
Income tax expense	9,800	7,400

Prepare common-size income statements for each year.

Note: Round answers to one decimal place (ex: 0.2345 = 23.5%).

ROSS COMPANY Common-Size Income Statements (Percent of Sales Revenue)
	2013	2012
Sales Revenue	Answer	Answer
Cost of Goods Sold	Answer	Answer
AnswerGross Profit on SalesOperating ExpensesIncome Tax ExpenseNet Income	Answer	Answer
AnswerGross Profit on SalesOperating ExpensesIncome Tax ExpenseNet Income
Selling Expenses	Answer	Answer
Administrative Expenses	Answer	Answer
Total	Answer	Answer
Income before Income Taxes	Answer	Answer
AnswerGross Profit on SalesOperating ExpensesIncome Tax ExpenseNet Income	Answer	Answer
AnswerGross Profit on SalesOperating ExpensesIncome Tax ExpenseNet Income	Answer	Answer

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