Express the following comparative income statements in common-size percents.Using the common-size percentages, which item is most responsible for the decline in net income?Income StatementExpress the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.) GOMEZ CORPORATIONComparative Income StatementsFor Years Ended December 31 Current YearPrior Year $%$%Sales$725,000 $645,000 Cost of goods sold570,800 293,200 Gross profit154,200 351,800 Operating expenses128,000 251,600 Net income$26,200 $100,200 Reason for Decline in Net Income Using the common-size percentages, which item is most responsible for the decline in net income?

percentage calculation = particulars / sales * 100 for example sales percentage = ($725000 /…

Answered: Express the following comparative…

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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Express the following comparative income statements in common-size percents.
Using the common-size percentages, which item is most responsible for the decline in net income?

Income Statement

Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.)

GOMEZ CORPORATION
Comparative Income Statements
For Years Ended December 31
	Current Year	Prior Year
	$	%	$	%
Sales	$725,000		$645,000
Cost of goods sold	570,800		293,200
Gross profit	154,200		351,800
Operating expenses	128,000		251,600
Net income	$26,200		$100,200

Reason for Decline in Net Income


Using the common-size percentages, which item is most responsible for the decline in net income?

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