The following income statement information is available for two different companies within the same industry: Jones $50,000 Net Sales Cost of Goods Sold Gross Profit Operating Expenses: Selling Expenses Administrative Expenses Total Operating Expenses Operating Income Other Income and (Expenses): Interest Expense Smith $9,000 3,000 6,000 400 600 1.000 5,000 (200) OA. Smith Company has a higher percentage for cost of goods sold. OB. Smith Company has a higher percentage for net income. OC. Jones Company has a higher percentage for gross profit. OD. Smith Company has a lower percentage for income tax expense. 30.000 20,000 600 800 1.400 18,600 (600)

The following income statement information is available for two different companies within the same industry: Jones $50,000 Net Sales Cost of Goods Sold Gross Profit Operating Expenses: Selling Expenses Administrative Expenses Total Operating Expenses Operating Income Other Income and (Expenses): Interest Expense Smith $9,000 3,000 6,000 400 600 1.000 5,000 (200) OA. Smith Company has a higher percentage for cost of goods sold. OB. Smith Company has a higher percentage for net income. OC. Jones Company has a higher percentage for gross profit. OD. Smith Company has a lower percentage for income tax expense. 30.000 20,000 600 800 1.400 18,600 (600)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 22Q: The following is select account information for August Sundries. Sales: $850,360; Sales Returns and...

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