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by $1,768,800. 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

by $1,768,800. 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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 14-1 (Algo) Common-Size Income Statement [LO14-1] 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 This Year $ 7,370,000 4,770,000 2,600,000 Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Members of the company's board of directors are surprised to see that net income increased by only $90,300 when sales increased by $1,768,800. 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).) 1,391,000 708,000 2,099,000 501,000 97,000 $ 404,000 % % 0.0 % % % 0.0 % 0.0 % % 0.0 % Last Year $ 5,601,200 3,509,000 2,092,200 Last Year % % 0.0 % 1,074,500 612,000 1,686,500 405,700 92,000 $ 313,700 % % 0.0 % 0.0 % % 0.0 %
Transcribed Image Text:Exercise 14-1 (Algo) Common-Size Income Statement [LO14-1] 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 This Year $ 7,370,000 4,770,000 2,600,000 Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Members of the company's board of directors are surprised to see that net income increased by only $90,300 when sales increased by $1,768,800. 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).) 1,391,000 708,000 2,099,000 501,000 97,000 $ 404,000 % % 0.0 % % % 0.0 % 0.0 % % 0.0 % Last Year $ 5,601,200 3,509,000 2,092,200 Last Year % % 0.0 % 1,074,500 612,000 1,686,500 405,700 92,000 $ 313,700 % % 0.0 % 0.0 % % 0.0 %
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