Compute common-size percent for the following comparative income statements (round percent to one decimal). Using the common-size percent, which item is most responsible for the decline in net income? Roberts Corporation Income Statement For Years Ended December 31 Current Year Prior Year Sales $740,000 $625,000 Cost of goods sold 560,300 290,800 Gross profit 179,700 334,200 Operating expenses 128,200 218,500 Net income $ 51,500 $115,700

Common size statement: It implies to a form of interpretation and analysis of the company's…

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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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Compute common-size percent for the following comparative income statements (round percent to one decimal). Using the common-size percent, which item is most responsible for the decline in net income?

Roberts Corporation
Income Statement
For Years Ended December 31	Current Year	Prior Year
Sales	$740,000	$625,000
Cost of goods sold	560,300	290,800
Gross profit	179,700	334,200
Operating expenses	128,200	218,500
Net income	$ 51,500	$115,700

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