Exercise 13-4 uting and interpreting 1-size per Compute common-size percents for the following comparative income statements (round percents to one decimal). Using the common-size percents, which item is most responsible for the decline in net income? GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Yr Sales Cost of goods sold Gross profit Operating expenses Net income Prior Yr $740,000 $625,000 560,300 290,800 179,700 128,200 $ 51,500 334,200 218,500 $115,700
Exercise 13-4 uting and interpreting 1-size per Compute common-size percents for the following comparative income statements (round percents to one decimal). Using the common-size percents, which item is most responsible for the decline in net income? GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Yr Sales Cost of goods sold Gross profit Operating expenses Net income Prior Yr $740,000 $625,000 560,300 290,800 179,700 128,200 $ 51,500 334,200 218,500 $115,700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 13-4 Computing and interpreting common-size percents P2
Compute common-size percents for the following comparative income statements (round percents to one decimal). Using
the common-size percents, which item is most responsible for the decline in net income?
GOMEZ CORPORATION
Comparative Income Statements
For Years Ended December 31 Current Yr Prior Yr
Sales
$740,000 $625,000
Cost of goods sold
560,300 290,800
Gross profit
Operating expenses
Net income
179,700
128,200
$ 51,500
334,200
218,500
$115,700](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F742fe7bc-3d8b-4542-8474-1ad1ad4243e8%2F97d0b4b6-35ad-4146-b32a-b1808405078f%2F2f6tais_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 13-4 Computing and interpreting common-size percents P2
Compute common-size percents for the following comparative income statements (round percents to one decimal). Using
the common-size percents, which item is most responsible for the decline in net income?
GOMEZ CORPORATION
Comparative Income Statements
For Years Ended December 31 Current Yr Prior Yr
Sales
$740,000 $625,000
Cost of goods sold
560,300 290,800
Gross profit
Operating expenses
Net income
179,700
128,200
$ 51,500
334,200
218,500
$115,700
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