SalesCost of goods soldComparative Income StatementGross marginSelling and administrative expenses:Selling expensesAdministrative expensesTotal expensesNet operating incomeInterest expenseNet income before taxesThis Year$ 7,310,0004,730,0002,580,000SalesCost of goods soldGross marginSelling and administrative expenses:Selling expensesAdministrative expensesTotal selling and administrative expensesNet operating incomeinterest expenseNet income before taxes1,383,000703,0002,086,000494,000102,000$ 392,000Members of the company's board of directors are surprised to see that net income increased by only $125,400 when sales increasedby $1,754,400.This Year:Required:1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e..0.1234 should be entered as 12.3).)%%0.0 %%%Last Year$ 5,555,6003,506,5002,049, 1000.0%0.0%%0.01%Last Year%%0.0 %%%1,075,000616,5001,691,500357,60091,000$ 266,6000.0 %0.0 %%0.01%

The common size income statement is the statement that shows analysis of the income statement where…

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

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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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%

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