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S A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement. Sales Cost of goods sold. Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes This Year $ 7,330,000 4,670,000 2,660,000 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes This Year 15% Members of the company's board of directors are surprised to see that net income increased by only $190,200 when sales increased by $1,759,200. % % 1,389,000 703,000 Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) % 2,092,000 568,000 99,000 $469,000 % % % % % Last Year $5,570,800 3,514,500 2,056,300 Last Year 1,075,500 612,000 1,687,500 % % % 368,800 90,000 $ 278,800 % % % % %

S A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement. Sales Cost of goods sold. Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes This Year $ 7,330,000 4,670,000 2,660,000 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes This Year 15% Members of the company's board of directors are surprised to see that net income increased by only $190,200 when sales increased by $1,759,200. % % 1,389,000 703,000 Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) % 2,092,000 568,000 99,000 $469,000 % % % % % Last Year $5,570,800 3,514,500 2,056,300 Last Year 1,075,500 612,000 1,687,500 % % % 368,800 90,000 $ 278,800 % % % % %

FINANCIAL ACCOUNTING
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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es A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses This Year $ 7,330,000 4,670,000 2,660,000 Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Members of the company's board of directors are surprised to see that net income increased by only $190,200 when sales increased by $1,759,200. This Year Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 1,389,000 703,000 2,092,000 568,000 99,000 $469,000 % % % % % % % % % Last Year $ 5,570,800 3,514,500 2,056,300 Last Year AUTOR 1,075,500 612,000 1,687,500 368,800 90,000 $ 278,800 % % % % % % % % %
Transcribed Image Text:es A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses This Year $ 7,330,000 4,670,000 2,660,000 Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Members of the company's board of directors are surprised to see that net income increased by only $190,200 when sales increased by $1,759,200. This Year Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 1,389,000 703,000 2,092,000 568,000 99,000 $469,000 % % % % % % % % % Last Year $ 5,570,800 3,514,500 2,056,300 Last Year AUTOR 1,075,500 612,000 1,687,500 368,800 90,000 $ 278,800 % % % % % % % % %
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