Exercise 14.3 (Algo) Common Size Income Statements (LO14-1) Year 2 Year 1 $ 483,000 330,000 $ 153,000 130,000 $ 23,000 Sales Cost of goods sold Gross profit Operating expenses $ 420,000 268,000 $ 152,000 116,000 36,000 Net income a. Prepare common size income statements for Price Company, a sole proprietorship, for the two years shown as above by converting the dollar amounts into percentages. For each year, sales will appear as 100 percent and other items will be expressed as a percentage of sales. (Income taxes are not involved as the business is not incorporated.) b. State whether the changes from year 1 to year 2 are favorable or unfavorable. Complete this question by entering your answers in the tabs below. Required A Required B Prepare common size income statements for Price Company, a sole proprietorship, for the two years shown as above by

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Chapter1: Financial Statements And Business Decisions
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Prepare common size income statement for price company, a sole proprietorship, for the two years shown as above by converting the dollar amounts into percentage. For each year, sales will appear as 100 percent and other items will be expressed as a percentage of sale. ( income race are not involved as the business is not incorporated).

Exercise 14.3 (Algo) Common Size Income Statements (LO14-1)
Year 2
Year 1
$ 483,000
330,000
$ 153,000
130,000
$ 23,000
Sales
Cost of goods sold
Gross profit
Operating expenses
$ 420,000
268,000
$ 152,000
116,000
36,000
Net income
a. Prepare common size income statements for Price Company, a sole proprietorship, for the two years shown as above by converting
the dollar amounts into percentages. For each year, sales will appear as 100 percent and other items will be expressed as a
percentage of sales. (Income taxes are not involved as the business is not incorporated.)
b. State whether the changes from year 1 to year 2 are favorable or unfavorable.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Prepare common size income statements for Price Company, a sole proprietorship, for the two years shown as above by
Transcribed Image Text:Exercise 14.3 (Algo) Common Size Income Statements (LO14-1) Year 2 Year 1 $ 483,000 330,000 $ 153,000 130,000 $ 23,000 Sales Cost of goods sold Gross profit Operating expenses $ 420,000 268,000 $ 152,000 116,000 36,000 Net income a. Prepare common size income statements for Price Company, a sole proprietorship, for the two years shown as above by converting the dollar amounts into percentages. For each year, sales will appear as 100 percent and other items will be expressed as a percentage of sales. (Income taxes are not involved as the business is not incorporated.) b. State whether the changes from year 1 to year 2 are favorable or unfavorable. Complete this question by entering your answers in the tabs below. Required A Required B Prepare common size income statements for Price Company, a sole proprietorship, for the two years shown as above by
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