esA comparative income statement is given below for McKenzie Sales, Limited, of Toronto:McKenzie Sales, LimitedComparative Income StatementSalesCost of goods sold.Gross marginSelling and administrative expenses:Selling expensesAdministrative expensesTotal expensesNet operating incomeInterest expenseNet income before taxesSalesCost of goods soldGross marginSelling and administrative expenses:Selling expensesAdministrative expensesTotal selling and administrative expensesNet operating incomeThis Year$ 7,390,0004,630,0002,760,000Members of the company's board of directors are surprised to see that net income increased by only $232,600 when sales increasedby $1,773,600.Interest expenseNet income before taxesRequired:1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e.,0.1234 should be entered as 12.3).)This Year%%0.0%Last Year$ 5,616,4003,512,0002,104,400%%0.0 %0.0 %%0.0%1,388,000705,0002,093,000 1,682,000667,000422,40098,00086,000$ 569,000$336,400Last Year%%0.0 %1,074,000608,000%%0.0 %0.0 %%0.0 %www

The common size income statement is the statement that shows analysis of the income statement where…

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 This Year $7,390,000 Last Year $5,616,400 4,630,000 3,512,000 2,760,000 2,104,400 1,388,000 705,000 2,093,000 667,000 98,000 $ 569,000 1,074,000 608,000 1,682,000 422,400 86,000 $ 336,400 Members of the company's board of directors are surprised to see that net income increased by only $232,600 when sales increased by $1,773,600. Required: nach year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e.,

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 This Year $7,390,000 Last Year $5,616,400 4,630,000 3,512,000 2,760,000 2,104,400 1,388,000 705,000 2,093,000 667,000 98,000 $ 569,000 1,074,000 608,000 1,682,000 422,400 86,000 $ 336,400 Members of the company's board of directors are surprised to see that net income increased by only $232,600 when sales increased by $1,773,600. Required: nach year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e.,

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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