Dominic Retail Enterprise Income Statements For the period ended December 31 Sales Cost of Goods Sold Merchandise Inventory, Beginning Purchases Total Goods Available for Sale Merchandise Inventory, Ending Cost of Goods Sold Gross Profit Operating Expenses Earnings Before Interest and Taxes Interest Expense Earnings Before Tax Income Tax Expense Net Income 2014 P 1,800,000 80,000 800,000 880,000 (55,000) 825,000 975,000 (650,000) 325,000 (5,000) 320,000 (96,000) ℗ 224,000 2013 1,500,000 25,000 750,000 775,000 (80,000) 695,000 805,000 (520,000) 285,000 (5,000) 280,000 (84,000) * 196,000
Dominic Retail Enterprise Income Statements For the period ended December 31 Sales Cost of Goods Sold Merchandise Inventory, Beginning Purchases Total Goods Available for Sale Merchandise Inventory, Ending Cost of Goods Sold Gross Profit Operating Expenses Earnings Before Interest and Taxes Interest Expense Earnings Before Tax Income Tax Expense Net Income 2014 P 1,800,000 80,000 800,000 880,000 (55,000) 825,000 975,000 (650,000) 325,000 (5,000) 320,000 (96,000) ℗ 224,000 2013 1,500,000 25,000 750,000 775,000 (80,000) 695,000 805,000 (520,000) 285,000 (5,000) 280,000 (84,000) * 196,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:10. Presented below are the income statements of Dominic Retail Enterprise, a reseller of home decors.
Prepare a common size income statement for both years, 2013 and 2014.
Compare the common size statements you have prepared and analyze the key changes that
took place.
●
Transcribed Image Text:Dominic Retail Enterprise
Income Statements
For the period ended December 31
Sales
Cost of Goods Sold
Merchandise Inventory, Beginning
Purchases
Total Goods Available for Sale
Merchandise Inventory, Ending
Cost of Goods Sold
Gross Profit
Operating Expenses
Earnings Before Interest and Taxes
Interest Expense
Earnings Before Tax
Income Tax Expense
Net Income
2014
℗ 1,800,000
80,000
800,000
880,000
(55,000)
825,000
975,000
(650,000)
325,000
(5,000)
320,000
(96,000)
℗ 224,000
2013
℗ 1,500,000
25,000
750,000
775,000
(80,000)
695,000
805,000
(520,000)
285,000
(5,000)
280,000
(84,000)
℗ 196,000
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