SalesCost of goods soldGross marginSelling and administrative expenses:Selling expensesAdministrative expensesTotal expensesNet operating incomeInterest expenseNet Income before taxesSalesCost of goods soldGross marginSelling and administrative cxponisesSelling expensesAdministrative expensesTotst selling and administrative expensesNet operating incomeInterest expenseNet income before taxesThis Year%0.0%Members of the company's board of directors are surprised to see that net income increased by only $177,000 when sales increasedby $1.752.000.%%Required:1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e..0.1234 should be entered as 12.3).)00%0.0 %This Year$ 7,300,0004,670,0002,630,000%1,379,000710,5000.0 %2,089,500540,50097,000$441,500Last Years0.0 %%%Last Year$5,548,0003,511,0002,037,00000%0.0%1,077,500609,0000.0%1,600,500350,50084,000$ 266,500

An income statement's common size analysis includes presenting each line item as a percentage of…

Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net Incone before taxes This Year $2,300,000 4,670,000 2,630,000 1,379,000 710,500 2,089,500 540,500 97,000 $.443,500 Last Year $5,548,000 3,511,000 2,037,000 1,077,500 609,000 1,600,500 350,500 84,000 $ 266,500 Members of the company's board of directors are surprised to see that net income increased by only $177,000 when sales increased by $1.752.000. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i... 0.1234 should be entered as 12.3).)

Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net Incone before taxes This Year $2,300,000 4,670,000 2,630,000 1,379,000 710,500 2,089,500 540,500 97,000 $.443,500 Last Year $5,548,000 3,511,000 2,037,000 1,077,500 609,000 1,600,500 350,500 84,000 $ 266,500 Members of the company's board of directors are surprised to see that net income increased by only $177,000 when sales increased by $1.752.000. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i... 0.1234 should be entered as 12.3).)

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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Income statement net sales $51,407.00 cost of products sold $25,076.00 gross profit $26,331.00 marketing, research, administrative exp $15,746.00 Depreciation $758.00 operating income(loss) $9,827.00 Interest expense $477.00 Earnings (loss)before income taxes $9,350.00 Income taxes $2,869.00 Net earnings(loss) $6,481.00 Balance Sheet Assets: Liablilites and Equity: cash and marketable securities $5,469.00 accounts payable $3,617.00 investment securities $423.00 accrued and other liablilties $7,689.00 accounts receivable $4,062.00 taxes payable $2,554.00 inventory $4,400.00 debt due within one year $8,287.00 deffered income taxes $958.00 total current liabilite $22,147.00 prepaid expense and other receivables $1,803.00 long term debt $12,554.00 total current assets $17,115.00 deferrred income taxes…
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Required information The following information applies to the questions displayed below.] The following data were provided by Mystery Incorporated for the rear ended December 31: Cost of Goods Sold Income Tax Expense Merchandise Sales (gross revenue) for Cash Merchandise Sales (gross revenue) on Credit Office Expense Sales Returns and Allowances Salaries and Wages Expense $ 171,000 19,530 252,000 44,400 19,600 7,410 42,600 the gross profit percentage in the current year improve, or decline, relative to 39% gross profit percentage in the prior year? > Improve > Decline
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