A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement This Year Last Year Sales $ 7,300,000 $ 5,548,000 Cost of goods sold 4,620,000 3,515,500 Gross margin 2,680,000 2,032,500 Selling and administrative expenses: Selling expenses 1,392,000 1,074,500 Administrative expenses 705,500 609,000 Total expenses 2,097,500 1,683,500 Net operating income 582,500 349,000 Interest expense 104,000 92,000 Net income before taxes $ 478,500 $ 257,000 Members of the company’s board of directors are surprised to see that net income increased by only $221,500 when sales increased by $1,752,000. 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))

Below is the common-sized statement for the current calendar year fo Hugo Boss and Industry average,  Industry  Hugo Boss Average  Sales    100%   100%  Cost of Goods Sold    46.7%     45.2%  Gross Profit     53.3%     54.8%  Selling Expenses     12.9%     16.7%   Administrative Expenses      13.1%      14.5%   Total Operating Expenses      25.0%      31.2%  Income from Operations     27.3%      23.6%  Other Revenue       1.8%       1.2%        29.%       24.8%  Other Expense(Interest)         1.0         0.9  Income Before Income Tax      28.1%         23.9%  Income Tax Expense         9.8           8.4  Net Income      18.3%         15.5%       Using the common-sized statement above, compare Hugo Boss with the industry average  and identify strengths and weaknesses that Hugo Boss has to the industry. Does Hugo Boss  need any course correction. What does it need?

The following income statements were drawn from the annual reports of the Atlanta Company and the Boston Company. Atlanta* $ 32,400 (15,500) 16,900 Boston* $ 87,500 (64,030) 23,470 Net sales Cost of goods sold Gross margin Less: Operating expenses Selling and administrative expenses Net income *All figures are reported in thousands of dollars. Required a-1. Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston. a-2. Ascertain which of the companies is a high-end retailer based on ratios computed. b. If Atlanta and Boston have equity of $17,800 and $20,200, respectively, which company is in the more profitable business? Complete this question by entering your answers in the tabs below. Req A1 Req A2 (12,740) (19,026) $ 4,160 $ 4,444 Req B Gross margin percentages Return-on-sales ratios Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston. (Round your answers to the nearest whole number.) Atlanta % % Boston

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 $ 7,300,000 4,640,000 2,660,000 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 1,391,000 702,500 2,093,500 566,500 106,000 $ 460,500 Members of the company's board of directors are surprised to see that net income increased by only $204,000 when sales increased by $1,752,000. 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).) This Year % % % Last Year $…

The income statement comparison for Forklift Material Handling shows the income statement for the current and prior year. FORKLIFT MATERIAL HANDLINGIncome statement Comparison   Current Year   Prior Year (Amounts in thousands)       Sales $33,700   $24,750 Cost of goods sold 21,905   16,830 Gross profit $11,795   $7,920 Expenses:       Wages $8,775   $6,189 Utilities 700   300 Repairs 169   325 Selling 505   300 Total Expenses $10,149   $7,114         Operating income ?   ? Operating income % ?   ? Total assets (investment base) $4,400   $1,400 Return on investment ?   ? Residual income (8% cost of capital) ?   ? A. Determine the operating income (loss) (dollars) for each year. If required round final answers to two decimal places.   Current Year   Prior Year Operating income (loss) $fill in the blank 1   $fill in the blank 2 B. Determine the operating income (loss) (percentage) for each year. If required round final answers to two…

Complete the following Common Size Income Statement:                                            Amount           Percent Sales                                 $14,000          ___________ (b) Cost of Goods Sold              9,000          ___________ (c) Gross Profit                          5,000           ___________ (d) Operating Expenses            2,000           ___________  (e) Net Income                    _________ (a)     ____________ (f)

Shown here is an income statement in the traditional format for a firm with a sales volume of 17,500 units:   Revenues $ 175,500   Cost of goods sold ($11,500 + $2.95/unit) 69,025   Gross profit $ 106,475   Operating expenses: Selling ($2,000 + $1.20/unit) 25,400   Administration ($5,250 + $0.45/unit) 14,025   Operating income $ 67,050   Required: a. Prepare an income statement in the contribution margin format. Contribution Margin Income Statement Variable expenses: Total variable expenses 0 0 Fixed expenses: Total fixed expenses 0 $0   b. Calculate the contribution margin per unit and the contribution margin ratio. (Do not round intermediate calculations. Round your answers to 2 decimal places.)   c|. Calculate the firm's operating income (or loss) if the volume changed from 19,500 units to 1. 24,500 units. 2. 11,500 units.   d. Refer to your answer to part a when total revenues were $175,500. Calculate the firm's operating income (or loss) if unit selling price and variable expense…

A comparative income statement follows for Martine Ltd. of Montreal:   MARTINE LTD. Comparative Income Statement For the Years Ended October 31, Year 1 and Year 2   Year 2 Year 1 Sales $ 8,050,000   $ 6,050,000   Less: Cost of goods sold   5,095,650     3,605,800   Gross margin   2,954,350     2,444,200   Less: Operating expenses:             Selling expenses   1,529,500     1,131,350   Administrative expenses   756,700     726,000   Total expenses   2,286,200     1,857,350   Net operating income   668,150     586,850   Less: Interest expense   136,850     114,950   Net income before taxes $ 531,300   $ 471,900       Members of the company's board of directors are surprised to see that net income increased by only $59,400 when sales increased by $2,000,000.   Required: 1. Express each year’s income statement in common-size percentages. (Round your answers to 1 decimal place.)

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…