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 Members of the company's board of directors are surprised to see that net income increased by only $240,500 when sales increased by $1,752,000. This Year $7,300,000 4,590,000 2,710,000 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).) % % % % % % 1,391,000 712,000 2,103,000 607,000 106,000 $ 501,000 % % Last Year $5,548,000 3,506,500 2,041,500 Last Year 1,078,000 612,000 % % % 1,690,000 351,500 91,000 $ 260,500 % % % % %

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 Members of the company's board of directors are surprised to see that net income increased by only $240,500 when sales increased by $1,752,000. This Year $7,300,000 4,590,000 2,710,000 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).) % % % % % % 1,391,000 712,000 2,103,000 607,000 106,000 $ 501,000 % % Last Year $5,548,000 3,506,500 2,041,500 Last Year 1,078,000 612,000 % % % 1,690,000 351,500 91,000 $ 260,500 % % % % %

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter2: Financial Statements And The Annual Report

Section: Chapter Questions

Problem 2.13MCE

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