The following percentages apply to Zachary Company for Year 3 and Year 4: Sales Cost of goods sold Gross margin Selling and administrative expense Interest expense Total expenses Income before taxes Income tax expense Net income ZACHARY COMPANY Income Statements Sales Cost of goods sold Gross margin Selling and administrative expenses Interest expense Total expenses Income before taxes Income tax expense Net income Required Assuming that sales were $515,000 in Year 3 and $585,000 in Year 4, prepare income statements for the two years. $ Year 4 100.0 % 61.1 38.9 26.5 2.7 29.2 9.7 5.5 4.2 % Year 4 0 0 0 $ Year 3 100.0 % 63.9 36.1 20.3 1.9 Year 3 22.2 13.9 7.2 6.7 % 0 0 0
The following percentages apply to Zachary Company for Year 3 and Year 4: Sales Cost of goods sold Gross margin Selling and administrative expense Interest expense Total expenses Income before taxes Income tax expense Net income ZACHARY COMPANY Income Statements Sales Cost of goods sold Gross margin Selling and administrative expenses Interest expense Total expenses Income before taxes Income tax expense Net income Required Assuming that sales were $515,000 in Year 3 and $585,000 in Year 4, prepare income statements for the two years. $ Year 4 100.0 % 61.1 38.9 26.5 2.7 29.2 9.7 5.5 4.2 % Year 4 0 0 0 $ Year 3 100.0 % 63.9 36.1 20.3 1.9 Year 3 22.2 13.9 7.2 6.7 % 0 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![The following percentages apply to Zachary Company for Year 3 and Year 4:
Sales
Cost of goods sold
Gross margin
Selling and administrative expense
Interest expense
Total expenses
Income before taxes
Income tax expense
Net income
ZACHARY COMPANY
Income Statements
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses
Interest expense
Total expenses
Income before taxes
Income tax expense
Net income
Required
Assuming that sales were $515,000 in Year 3 and $585,000 in Year 4, prepare income statements for the two years.
$
Year 4
100.0 %
61.1
38.9
26.5
2.7
29.2
9.7
5.5
4.2 %
Year 4
0
0
0 $
Year 3
100.0 %
63.9
36.1
20.3
1.9
Year 3
22.2
13.9
7.2
6.7 %
0
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F69ae1dd6-3615-4a1a-a17e-22e8401cf941%2F9a087d81-1d5c-47f7-bdbe-04cb97f67c41%2Fybn3p9a_processed.png&w=3840&q=75)
Transcribed Image Text:The following percentages apply to Zachary Company for Year 3 and Year 4:
Sales
Cost of goods sold
Gross margin
Selling and administrative expense
Interest expense
Total expenses
Income before taxes
Income tax expense
Net income
ZACHARY COMPANY
Income Statements
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses
Interest expense
Total expenses
Income before taxes
Income tax expense
Net income
Required
Assuming that sales were $515,000 in Year 3 and $585,000 in Year 4, prepare income statements for the two years.
$
Year 4
100.0 %
61.1
38.9
26.5
2.7
29.2
9.7
5.5
4.2 %
Year 4
0
0
0 $
Year 3
100.0 %
63.9
36.1
20.3
1.9
Year 3
22.2
13.9
7.2
6.7 %
0
0
0
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education