Sales Cost of goods sold Gross profit Selling & administrative expense Operating profit Interest expense Income before taxes Taxes (35%) Income after taxes 20x1 $ 2,620,000 2,400,000 $ 220,000 234,000 $ -14,000 45,600 $ -59,600 -20,860 $ -38,740 a. Cost of goods sold to sales b. Selling and administrative expense to sales c. Interest expense to sales 20X1 for each year, compute the following ratios and indicate how the change in each ratio will aff rofitability in 20X2. Note: Input your answers as a percent rounded to 2 decimal places. % 20x2 $ 3,770,000 2,380,000 $ 1,390,000 264,000 % % $ 1,126,000 52,400 $ 1,073,600 375,760 $ 697,840 20X2 % % % Profitability

Sales Cost of goods sold Gross profit Selling & administrative expense Operating profit Interest expense Income before taxes Taxes (35%) Income after taxes 20x1 $ 2,620,000 2,400,000 $ 220,000 234,000 $ -14,000 45,600 $ -59,600 -20,860 $ -38,740 a. Cost of goods sold to sales b. Selling and administrative expense to sales c. Interest expense to sales 20X1 for each year, compute the following ratios and indicate how the change in each ratio will aff rofitability in 20X2. Note: Input your answers as a percent rounded to 2 decimal places. % 20x2 $ 3,770,000 2,380,000 $ 1,390,000 264,000 % % $ 1,126,000 52,400 $ 1,073,600 375,760 $ 697,840 20X2 % % % Profitability

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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