completed the below table but wanted to make sure I got it correct. Can you please verify? Thank you [1] using common size on income statement : ABC Inc., Income Statement 2020 % 2019 % Sales $126,200 $100,000 Sale returns and allowances 2,426 2,000 Net sales $123,774 $ 98,000 Cost of goods sold 58,800 50,000 Gross profit $ 64,974 $ 48,000 Selling expenses 17,310 15,000 Depreciation expenses 500 500 Salary and wages expenses 5,000 4,000 Rent Expenses 7,000 7,000 Utilities expenses 964 500 Total operating expenses $ 30,774 $ 27,000 Income from operation $ 34,200 $ 21,000 Other Income 1,000 1,000 Income before income tax $ 35,000 $ 22,000 Income tax expenses 12,000 6,000 Net Income $ 23,000 $ 16,000 Interpretation on income statement by using common size analysi
Hello Tutor,
I completed the below table but wanted to make sure I got it correct. Can you please verify? Thank you
[1] using common size on income statement :
ABC Inc.,
Income Statement
|
2020 |
% |
2019 |
% |
Sales |
$126,200 |
|
$100,000 |
|
Sale returns and allowances |
2,426 |
|
2,000 |
|
Net sales |
$123,774 |
|
$ 98,000 |
|
Cost of goods sold |
58,800 |
|
50,000 |
|
Gross profit |
$ 64,974 |
|
$ 48,000 |
|
Selling expenses |
17,310 |
|
15,000 |
|
Depreciation expenses |
500 |
|
500 |
|
Salary and wages expenses |
5,000 |
|
4,000 |
|
Rent Expenses |
7,000 |
|
7,000 |
|
Utilities expenses |
964 |
|
500 |
|
Total operating expenses |
$ 30,774 |
|
$ 27,000 |
|
Income from operation |
$ 34,200 |
|
$ 21,000 |
|
Other Income |
1,000 |
|
1,000 |
|
Income before income tax |
$ 35,000 |
|
$ 22,000 |
|
Income tax expenses |
12,000 |
|
6,000 |
|
Net Income |
$ 23,000 |
|
$ 16,000 |
|
Interpretation on income statement by using common size analysis:
![ABC Inc.,
Income Statement
2019
2020
1007s
$126,200
2,426
$123,774
58,800
$ 64,974
17,310
100% $100,000
2,000
$ 98,000
50,000
Sales
Sale returns and allowances
9395
46%.%
5/.5%% $ 48,000
13.7%
0,004
0.0408
0,06 %
964 0,082
24.4 $ 27,000
27.47 $ 21,000
989
504
48%
の,
0.001%
0,04%
0.0296
Net sales
Cost of goods sold
Gross profit
15,000
Selling expenses
Depreciation expenses
Salary and wages expenses
Rent Expenses
Utilities expenses
500
500
5,000
7,000
4,000
7,000
500
Total operating expenses
Income from operation
$ 30,774
$ 34,200
27%
214
1,000 ,00%
27.7
Other Income
1.0%
22%
.067
16%
1,000
$ 22,000
Income before income tax
$ 35,000
Income tax expenses
12,000
6,000
Net Income
$ 23,000
18.2%
$16,000
Interpretation on income statement buuucing](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9c476e76-6dbc-4fec-9ab8-8ced8bfd29ac%2F12e85875-9491-47c9-bfa8-0964b8e55a89%2Fiz3s7lh_processed.jpeg&w=3840&q=75)
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