Common-Size Income StatementA comparative income statement is given below for McKenzie Sales, Ltd., of Toronto:Members of the company’s board of directors are surprised to see that net income increased by only $38,000 when sales increased by $2,000,000.Required:1. Express each year’s income statement in common-size percentages. Carry computations to one decimal place.2. Comment briefly on the changes between the two years. McKenzie Sales, Ltd.Comparative Income StatementThis YearLast YearSales .....$8,000,000$6,000,000Cost of goods sold..Gross margin ...4,984,0003,516,0003,016,0002,484,000Selling and administrative expenses:Selling expensesAdministrative expenses.1,480,0001,092,000712,000618,0001,710,000Total expenses2,192,000824,000774,000Net operating incomeInterest expense....96,000$ 728,00084,000$ 690,000Net income before taxes

A common size income statement is an income statement in which each line item is expressed as a…

McKenzie Sales, Ltd. Comparative Income Statement This Year Last Year Sales ..... $8,000,000 $6,000,000 Cost of goods sold.. Gross margin ... 4,984,000 3,516,000 3,016,000 2,484,000 Selling and administrative expenses: Selling expenses Administrative expenses. 1,480,000 1,092,000 712,000 618,000 1,710,000 Total expenses 2,192,000 824,000 774,000 Net operating income Interest expense .... 96,000 $ 728,000 84,000 $ 690,000 Net income before taxes

McKenzie Sales, Ltd. Comparative Income Statement This Year Last Year Sales ..... $8,000,000 $6,000,000 Cost of goods sold.. Gross margin ... 4,984,000 3,516,000 3,016,000 2,484,000 Selling and administrative expenses: Selling expenses Administrative expenses. 1,480,000 1,092,000 712,000 618,000 1,710,000 Total expenses 2,192,000 824,000 774,000 Net operating income Interest expense .... 96,000 $ 728,000 84,000 $ 690,000 Net income before taxes

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 38E: Sundahl Companys income statements for the past 2 years are as follows: Refer to the information for...

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Revenue and expense data for Young Technologies Inc. are as follows: Year 2 Year 1 Sales $500,000 $440,000 Cost of goods sold 325,000 242,000 Selling expense 70,000 79,200 Administrative expenses 75,000 70,400 Income tax expense 10,500 16,400 Required: a. Prepare an income statement in comparative form, stating each item for both years as an amount and as a percent of sales. Round percentage amounts to nearest whole percent. Young Technologies Inc. Comparative Income Statement For the Years Ended December 31, Year 2 and Year 1 Year 2 Amount Year 2 Percent Year 1 Amount Year 1 Percent $fill in the blank 0b884b011fe8068_2 fill in the blank 0b884b011fe8068_3% $fill in the blank 0b884b011fe8068_4 fill in the blank 0b884b011fe8068_5% fill in the blank 0b884b011fe8068_7 fill in the blank 0b884b011fe8068_8% fill in the blank 0b884b011fe8068_9 fill in the blank 0b884b011fe8068_10% $fill in the blank…
Revenue and expense data for Young Technologies Inc. are as follows: Year 2 Year 1 Sales $500,000 $440,000 Cost of goods sold 325,000 242,000 Selling expense 70,000 79,200 Administrative expenses 75,000 70,400 Income tax expense 10,500 16,400 Required: a. Prepare an income statement in comparative form, stating each item for both years as an amount and as a percent of sales. Round percentage amounts to nearest whole percent. Young Technologies Inc. Comparative Income Statement For the Years Ended December 31, Year 2 and Year 1 Year 2 Amount Year 2 Percent Year 1 Amount Year 1 Percent fill in the blank fill in the blank $fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank $fill in the blank fill in the blank $fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank…
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