A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales. Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes This Year $ 7,350,000 4,610,000 2,740,000 1,390,000 706,000 2,096,000 644,000 101,000 $ 543,000 Last Year $ 5,586,000 3,511,500 2,074,500 1,079,500 613,500 1,693,000 381,500 87,000 $ 294,500 Members of the company's board of directors are surprised to see that net income increased by only $248,500 when sales increased by $1,764,000. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)

A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales. Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes This Year $ 7,350,000 4,610,000 2,740,000 1,390,000 706,000 2,096,000 644,000 101,000 $ 543,000 Last Year $ 5,586,000 3,511,500 2,074,500 1,079,500 613,500 1,693,000 381,500 87,000 $ 294,500 Members of the company's board of directors are surprised to see that net income increased by only $248,500 when sales increased by $1,764,000. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter12: Financial Statements, Closing Entries, And Reversing Entries

Section: Chapter Questions

Problem 3E

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Identify each of the following items relating to sections of an income statement as Revenue from Sales (S), Cost of Goods Sold (CGS), Selling Expenses (SE), General Expenses (GE), Other Income (OI), or Other Expenses (OE). a. Utilities Expense b. Advertising Expense c. Purchases Discounts d. Sales Returns and Allowances e. Interest Income f. Freight In g. Depreciation Expense, Equipment h. Interest Expense i. Rent Expense j. Sales
A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses come Statement L Administrative expenses Total expenses Net operating income Interest expense Net income before taxes $ This Year 7,350,000 4,750,000 2,600,000 1,386,000 708,000 2,094,000 506,000 98,000 $408,000 Last Year. $ 5,586,000 3,512,500 2,073,500 1,081,500 608,000 1,689,500 384,000 89,000 $ 295,000 Members of the company's board of directors are surprised to see that net income increased by only $113,000 when sales increased by $1,764,000. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e..
A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Administrative expenses Selling expenses Total expenses Net operating income Interest expense Net income before taxes This Year $ 7,310,000 4,620,000 2,690,000 Last Year $ 5,555,600 3,515,500 2,040,100 1,386,000 1,079,500 709,500 611,000 2,095,500 1,690,500 594,500 98,000 $ 496,500 349,600 91,000 $ 258,600 Members of the company's board of directors are surprised to see that net income increased by only $237,900 when sales increased by $1,754,400. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) × Answer is complete but not entirely correct. This Year Last Year Sales 100.0 % 100.0 % Cost of goods sold 63.5 % 63.2 % Gross margin 36.5 % 36.8 % Selling and…
A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes This Year $ 7,400,000 4,730,000 2,670,000 This Year The company's board of directors is surprised to see net income increased by only $124,000 when sales increased by $1,776,000. Required: 1. Express each year's income statement in common-size percentages. Note: Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3). % % 0.0% 1,393,000 711,000 2,104,000 566,000 104,000 $ 462,000 % % 0.0 % 0.0 % % 0.0 % Last…
A comparative Income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net incone before taxes Sales Cost of goods sold Gross margin Selling and administrative expenses Selling expenses Administrative expenses Total selling and administrative expenses This Year $ 7,360,000 4,740,000 2,620,000 Net operating income Interest expense Net income before taxes This Year Members of the company's board of directors are surprised to see that net income increased by only $134,900 when sales increased by Required: 1 Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (ie.. 0.1234 should be entered as 12.3).) 0.0 % % % 0.0 % 0.0 % 1,374,000 703,000 2,077,000 % 543,000 100,000 0443,000 0.0 % Last Year…
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es A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales Cost of goods sold. Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income This Year $ 7,390,000 4,630,000 2,760,000 Members of the company's board of directors are surprised to see that net income increased by only $232,600 when sales increased by $1,773,600. Interest expense Net income before taxes Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) This Year % % 0.0% Last Year $ 5,616,400 3,512,000 2,104,400 % % 0.0 % 0.0 % % 0.0%…
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