Vinubhai 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, LimitedComparative Income StatementSalesCost of goods soldGross marginSelling and administrative expenses:Selling expensesAdministrative expensesTotal expensesNet operating income.Interest expenseNet income before taxes.SalesCost of goods soldGross marginSelling and administrative expenses:Selling expensesThis Year$ 7,370,0004,770,0002,600,000Administrative expensesTotal selling and administrative expensesNet operating incomeInterest expenseNet income before taxesMembers of the company's board of directors are surprised to see that net income increased by only $90,300 when sales increasedby $1,768,800.This YearRequired:1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e.,0.1234 should be entered as 12.3).)1,391,000708,0002,099,000501,00097,000$ 404,000%%0.0 %%%0.0 %0.0 %%0.0 %Last Year$ 5,601,2003,509,0002,092,200Last Year%%0.0 %1,074,500612,0001,686,500405,70092,000$ 313,700%%0.0 %0.0 %%0.0 %

Common-size Statements are accounting statements expressed in percentage of some base figures. It…

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: 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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