Required: 1. Express each year's income statement in common-size percentages. (R
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 %](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F53d668a5-dfc0-4c8f-8bb8-bfcb5d3fb783%2F59452913-f6f7-49a6-bd22-1704abb705cf%2F5h0ub_processed.jpeg&w=3840&q=75)
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).)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F53d668a5-dfc0-4c8f-8bb8-bfcb5d3fb783%2F59452913-f6f7-49a6-bd22-1704abb705cf%2F3pl89nx_processed.jpeg&w=3840&q=75)
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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