The second step is to prepare a​ common-size income statement for the firm.   Complete the​ common-size income statement​ below:  ​(Round to one decimal​ place.)   Common-Size Income Statement   2016     Revenues $ 29,970          % Cost of goods sold   (20,030)     Gross profit $ 9,940   % Operating expenses   (8,030)     Net operating income $ 1,910   % Interest expense   (860)     Earnings before taxes $ 1,050   % Income taxes   (382)     Net income $ 668   %

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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b. The second step is to prepare a​ common-size income statement for the firm.
 
Complete the​ common-size income statement​ below:  ​(Round to one decimal​ place.)
 
Common-Size Income Statement
 
2016
 
 
Revenues
$
29,970
        
%
Cost of goods sold
 
(20,030)
 
 
Gross profit
$
9,940
 
%
Operating expenses
 
(8,030)
 
 
Net operating income
$
1,910
 
%
Interest expense
 
(860)
 
 
Earnings before taxes
$
1,050
 
%
Income taxes
 
(382)
 
 
Net income
$
668
 
%
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