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Business
Accounting
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 $8,000,000 4,984,000 3,016,000 1,480,000 712,000 2,192,000 824,000 96,000 $728,000 Last Year 1. Express each year's income statement in common-size percentages. 2. Interpret the changes between the two years. $6,000,000 3,516,000 2,484,000 1,092,000 618,000 1,710,000 774,000 84,000 $ 690,000 The company's board of directors is surprised to see net income increased by only $38,000 when sales increased by $2,000,000. Required: \table[[, This Year, Last Year], [\table[[Sales . . . . . . . . . . . .], [Cost of goods sold . . . . ]], \table[[$8,000,000

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 $8,000,000 4,984,000 3,016,000 1,480,000 712,000 2,192,000 824,000 96,000 $728,000 Last Year 1. Express each year's income statement in common-size percentages. 2. Interpret the changes between the two years. $6,000,000 3,516,000 2,484,000 1,092,000 618,000 1,710,000 774,000 84,000 $ 690,000 The company's board of directors is surprised to see net income increased by only $38,000 when sales increased by $2,000,000. Required: \table[[, This Year, Last Year], [\table[[Sales . . . . . . . . . . . .], [Cost of goods sold . . . . ]], \table[[$8,000,000

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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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 $8,000,000 4,984,000 3,016,000 1,480,000 712,000 2,192,000 824,000 96,000 $728,000 Last Year 1. Express each year's income statement in common-size percentages. 2. Interpret the changes between the two years. $6,000,000 3,516,000 2,484,000 1,092,000 618,000 1,710,000 774,000 84,000 $ 690,000 The company's board of directors is surprised to see net income increased by only $38,000 when sales increased by $2,000,000. Required:
Transcribed Image Text: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 $8,000,000 4,984,000 3,016,000 1,480,000 712,000 2,192,000 824,000 96,000 $728,000 Last Year 1. Express each year's income statement in common-size percentages. 2. Interpret the changes between the two years. $6,000,000 3,516,000 2,484,000 1,092,000 618,000 1,710,000 774,000 84,000 $ 690,000 The company's board of directors is surprised to see net income increased by only $38,000 when sales increased by $2,000,000. Required:
\table[[, This Year, Last Year], [\table[[Sales . . . . . . . . . . . .], [Cost of goods sold . . . . ]], \table[[$8,000,000
Transcribed Image Text:\table[[, This Year, Last Year], [\table[[Sales . . . . . . . . . . . .], [Cost of goods sold . . . . ]], \table[[$8,000,000
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