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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. embers of the company's board of

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. embers of the company's board of

College Accounting (Book Only): A Career Approach
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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Sales Cost of goods sold Comparative Income Statement Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes This Year $ 7,310,000 4,730,000 2,580,000 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 1,383,000 703,000 2,086,000 494,000 102,000 $ 392,000 Members of the company's board of directors are surprised to see that net income increased by only $125,400 when sales increased by $1,754,400. This Year: 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).) % % 0.0 % % % Last Year $ 5,555,600 3,506,500 2,049, 100 0.0% 0.0% % 0.01% Last Year % % 0.0 % % % 1,075,000 616,500 1,691,500 357,600 91,000 $ 266,600 0.0 % 0.0 % % 0.01%
Transcribed Image Text:Sales Cost of goods sold Comparative Income Statement Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes This Year $ 7,310,000 4,730,000 2,580,000 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 1,383,000 703,000 2,086,000 494,000 102,000 $ 392,000 Members of the company's board of directors are surprised to see that net income increased by only $125,400 when sales increased by $1,754,400. This Year: 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).) % % 0.0 % % % Last Year $ 5,555,600 3,506,500 2,049, 100 0.0% 0.0% % 0.01% Last Year % % 0.0 % % % 1,075,000 616,500 1,691,500 357,600 91,000 $ 266,600 0.0 % 0.0 % % 0.01%
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