PE 12-11 Comparative Common-Size Income Statement Using the following data, (1) prepare comparative common-size income statements for Years 1 and 2 and (2) briefly outline why return on sales is lower in Year 2 (1.8%) compared to Year 1 (7.0%). Sales Cost of goods sold Gross profit Operating expenses Operating income Interest expense Income before income taxes Income tax expense Net income Year 2 $ 100,000 70,000 $ 30,000 25,000 $5,000 2,000 3,000 1,200 1,800 $ Year 1 $80,000 50,000 $30,000 20,000 STUKENT $10,000 2,000 $ 8,000 2,400 $ 5,600 Lul

PE 12-11 Comparative Common-Size Income Statement Using the following data, (1) prepare comparative common-size income statements for Years 1 and 2 and (2) briefly outline why return on sales is lower in Year 2 (1.8%) compared to Year 1 (7.0%). Sales Cost of goods sold Gross profit Operating expenses Operating income Interest expense Income before income taxes Income tax expense Net income Year 2 $ 100,000 70,000 $ 30,000 25,000 $5,000 2,000 3,000 1,200 1,800 $ Year 1 $80,000 50,000 $30,000 20,000 STUKENT $10,000 2,000 $ 8,000 2,400 $ 5,600 Lul

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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