SalesCost of goods soldGross profitOperating expensesNet incomeYear 2$ 548,000330,000a. Prepare common size income statements for Price Company, a sole proprietorship, for the two years shown as aboveby converting the dollar amounts into percentages. For each year, sales will appear as 100 percent and other items will beexpressed as a percentage of sales. (Income taxes are not involved as the business is not incorporated.)b. State whether the changes from year 1 to year 2 are favorable or unfavorable.Required A Required BYear 1$ 411,000268,000$ 218,000$ 143,000116,000130,000$ 88,000 $ 27,000Complete this question by entering your answers in the tabs below.SalesCost of goods soldGross profitOperating expensesNet incomePrepare common size income statements for Price Company, a sole proprietorship, for the two years shown as above byconverting the dollar amounts into percentages. For each year, sales will appear as 100 percent and other items will beexpressed as a percentage of sales. (Income taxes are not involved as the business is not incorporated.) (Round yourpercentage value answers to 2 decimal places. i.e. 0.1234 as 12.34%.)Year 2%%%%%< Required AYear 1%%%%%Required B >Show less

Common size income statements represent the line items of income statement as a percentage of sales.…

Sales Cost of goods sold Gross profit Operating expenses Net income Year 1 $ 411,000 268,000 $ 143,000 116,000 $ 88,000 $ 27,000 a. Prepare common size income statements for Price Company, a sole proprietorship, for the two years shown as above by converting the dollar amounts into percentages. For each year, sales will appear as 100 percent and other items will be expressed as a percentage of sales. (Income taxes are not involved as the business is not incorporated.) b. State whether the changes from year 1 to year 2 are favorable or unfavorable. Required A Year 2 $ 548,000 330,000 $ 218,000 130,000 Complete this question by entering your answers in the tabs below. Required R

Sales Cost of goods sold Gross profit Operating expenses Net income Year 1 $ 411,000 268,000 $ 143,000 116,000 $ 88,000 $ 27,000 a. Prepare common size income statements for Price Company, a sole proprietorship, for the two years shown as above by converting the dollar amounts into percentages. For each year, sales will appear as 100 percent and other items will be expressed as a percentage of sales. (Income taxes are not involved as the business is not incorporated.) b. State whether the changes from year 1 to year 2 are favorable or unfavorable. Required A Year 2 $ 548,000 330,000 $ 218,000 130,000 Complete this question by entering your answers in the tabs below. Required R

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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