Express the following comparative income statements in common-size percents.Using the common-size percentages, which item is most responsible for the decline in net income?Complete this question by entering your answers in the tabs below. Income StatementReason for Decline in Net IncomeExpress the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.) GOMEZ CORPORATIONComparative Income StatementsFor Years Ended December 31 Current YearPrior Year $%$%Sales$740,000100.0$625,000100.0Cost of goods sold560,300 290,800 Gross profit179,700 334,200 Operating expenses128,200 218,500 Net income$51,500 $115,700 Using the common-size percentages, which item is most responsible for the decline in net income? Using the common-size percentages, which item is most responsible for the decline in net income?

Comparative Income statement: An income statement which is prepared in order to make a comparison of…

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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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Express the following comparative income statements in common-size percents.
Using the common-size percentages, which item is most responsible for the decline in net income?

Complete this question by entering your answers in the tabs below.

Income Statement
Reason for Decline in Net Income

Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.)

GOMEZ CORPORATION
Comparative Income Statements
For Years Ended December 31
	Current Year	Prior Year
	$	%	$	%
Sales	$740,000	100.0	$625,000	100.0
Cost of goods sold	560,300		290,800
Gross profit	179,700		334,200
Operating expenses	128,200		218,500
Net income	$51,500		$115,700

Using the common-size percentages, which item is most responsible for the decline in net income?

Using the common-size percentages, which item is most responsible for the decline in net income?

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