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)

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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