Not Graded Common-Size Income StatementsConsider the following income statement data from the Ross Company: 20132012Sales revenue$525,000$450,000Cost of goods sold336,000279,000Selling expenses106,000100,000Administrative expenses61,00055,000Income tax expense8,8006,400Prepare 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 RevenueAnswerAnswerCost of Goods SoldAnswerAnswerAnswerAnswerAnswerAnswer Selling ExpensesAnswerAnswerAdministrative ExpensesAnswerAnswerTotalAnswerAnswerIncome before Income TaxesAnswerAnswerAnswerAnswerAnswerAnswerAnswerAnswer

ROSS COMPANYCommon-Size Income Statements(Percent of Sales Revenue) 2013 2012 Sales revenue $525,000 $450,000 Cost of goods sold 336,000 279,000 Gross profit $189,000 $171,000 Less: expenses Selling expenses 106,000 100,000 Administrative expenses 61,000 55,000 Total 167,000 155,000 Income before Income Taxes $22,000 $16,000 Less: Income tax expense 8,800 6,400 Net Income $13,200 $9,600

Answered: Consider the following income statement…

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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Not Graded

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	106,000	100,000
Administrative expenses	61,000	55,000
Income tax expense	8,800	6,400

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
Answer	Answer	Answer
Answer
Selling Expenses	Answer	Answer
Administrative Expenses	Answer	Answer
Total	Answer	Answer
Income before Income Taxes	Answer	Answer
Answer	Answer	Answer
Answer	Answer	Answer

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