
(a)
A common size income statement is an income statement in which each record is communicated as a level of the estimation of offers. It is utilized for vertical examination, in which each detail in a fiscal report is recorded as a level of a base figure inside the statement, to make correlations simpler.
To discuss:
Why net income increased from 2017 to 2019 even cost of goods sold also increases?
(b)
Gross profit is essentially income less costs of goods sold (COGS). Declining gross profit edge is a noteworthy issue for a revenue driven business. Understanding components that add to edge diminishes places you in a superior position to respond emphatically.
A common size income statement is an income statement in which each record is communicated as a level of the estimation of offers. It is utilized for vertical examination, in which each detail in a fiscal report is recorded as a level of a base figure inside the statement, to make correlations simpler.
To discuss:
Explain what could cause sales to increase while the gross margin percentage decreases.

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Chapter 12 Solutions
Cornerstones of Financial Accounting
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