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. embers of the company's board of
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. embers of the company's board of
College Accounting (Book Only): A Career Approach
12th Edition
ISBN:9781305084087
Author:Cathy J. Scott
Publisher:Cathy J. Scott
Chapter12: Financial Statements, Closing Entries, And Reversing Entries
Section: Chapter Questions
Problem 3E
Related questions
Question
![Sales
Cost of goods sold
Comparative Income Statement
Gross margin
Selling and administrative expenses:
Selling expenses
Administrative expenses
Total expenses
Net operating income
Interest expense
Net income before taxes
This Year
$ 7,310,000
4,730,000
2,580,000
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
1,383,000
703,000
2,086,000
494,000
102,000
$ 392,000
Members of the company's board of directors are surprised to see that net income increased by only $125,400 when sales increased
by $1,754,400.
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).)
%
%
0.0 %
%
%
Last Year
$ 5,555,600
3,506,500
2,049, 100
0.0%
0.0%
%
0.01%
Last Year
%
%
0.0 %
%
%
1,075,000
616,500
1,691,500
357,600
91,000
$ 266,600
0.0 %
0.0 %
%
0.01%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0416d5e6-96cc-4a94-9dba-4ebbc0c16ad9%2F78da997d-d224-4709-af82-f5803eb2b675%2Fkdwl8po_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sales
Cost of goods sold
Comparative Income Statement
Gross margin
Selling and administrative expenses:
Selling expenses
Administrative expenses
Total expenses
Net operating income
Interest expense
Net income before taxes
This Year
$ 7,310,000
4,730,000
2,580,000
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
1,383,000
703,000
2,086,000
494,000
102,000
$ 392,000
Members of the company's board of directors are surprised to see that net income increased by only $125,400 when sales increased
by $1,754,400.
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).)
%
%
0.0 %
%
%
Last Year
$ 5,555,600
3,506,500
2,049, 100
0.0%
0.0%
%
0.01%
Last Year
%
%
0.0 %
%
%
1,075,000
616,500
1,691,500
357,600
91,000
$ 266,600
0.0 %
0.0 %
%
0.01%
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