Required: 1. Express each year's income statement in common-size percentages. (R

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Required:
1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place
0.1234 should be entered as 12.3).)
S Yeal
%
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses
0.0%
0.0 %
Selling expenses
Administrative expenses
Total selling and administrative expenses
Net operating income
Interest expense
Net income before taxes
0.0 %
0.0 %
0.0 %
0.0 %
00%
0.0 %
Transcribed Image Text:Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place 0.1234 should be entered as 12.3).) S Yeal % Sales Cost of goods sold Gross margin Selling and administrative expenses 0.0% 0.0 % Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes 0.0 % 0.0 % 0.0 % 0.0 % 00% 0.0 %
Exercise 14-1 (Algo) Common-Size Income Statement (LO14-1]
A comparative income statement is given below for McKenzie Sales, Limited, of Toronto:
Hckenzle Sales, Linited
Conparative Income Statenent
This Year
$7, 380,000
4,780,000
2,600,000
Last Vear
$ 5,608,800
D514,000
2,094,800
Sales
Cost of goods sold
Gross margin
Selling and adninistrative expenses
Selling expenses
Administrative expenses
Total expenses
1,397,000
705,500
2,102,500
497,500
102,000
$ 395,500
1,081,500
611,po0
1,694,S00
Net operating incone
Interest expense
400,300
85, 000
$ 315, 500
Net incone before taxes
Members of the company's board of directors are surprised to see that net income increased by only $80,200 when sales increased
by $1,771,200
Required:
1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (le.,
0.1234 should be entered as 12.3).)
Transcribed Image Text:Exercise 14-1 (Algo) Common-Size Income Statement (LO14-1] A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: Hckenzle Sales, Linited Conparative Income Statenent This Year $7, 380,000 4,780,000 2,600,000 Last Vear $ 5,608,800 D514,000 2,094,800 Sales Cost of goods sold Gross margin Selling and adninistrative expenses Selling expenses Administrative expenses Total expenses 1,397,000 705,500 2,102,500 497,500 102,000 $ 395,500 1,081,500 611,po0 1,694,S00 Net operating incone Interest expense 400,300 85, 000 $ 315, 500 Net incone before taxes Members of the company's board of directors are surprised to see that net income increased by only $80,200 when sales increased by $1,771,200 Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (le., 0.1234 should be entered as 12.3).)
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