The following percentages apply to Zachary Company for Year 3 and Year 4: Sales Cost of goods sold Gross margin Selling and administrative expense Interest expense Total expenses Income before taxes Income tax expense Net income ZACHARY COMPANY Income Statements Sales Cost of goods sold Gross margin Selling and administrative expenses Interest expense Total expenses Income before taxes Income tax expense Net income Required Assuming that sales were $515,000 in Year 3 and $585,000 in Year 4, prepare income statements for the two years. $ Year 4 100.0 % 61.1 38.9 26.5 2.7 29.2 9.7 5.5 4.2 % Year 4 0 0 0 $ Year 3 100.0 % 63.9 36.1 20.3 1.9 Year 3 22.2 13.9 7.2 6.7 % 0 0 0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following percentages apply to Zachary Company for Year 3 and Year 4:
Sales
Cost of goods sold
Gross margin
Selling and administrative expense
Interest expense
Total expenses
Income before taxes
Income tax expense
Net income
ZACHARY COMPANY
Income Statements
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses
Interest expense
Total expenses
Income before taxes
Income tax expense
Net income
Required
Assuming that sales were $515,000 in Year 3 and $585,000 in Year 4, prepare income statements for the two years.
$
Year 4
100.0 %
61.1
38.9
26.5
2.7
29.2
9.7
5.5
4.2 %
Year 4
0
0
0 $
Year 3
100.0 %
63.9
36.1
20.3
1.9
Year 3
22.2
13.9
7.2
6.7 %
0
0
0
Transcribed Image Text:The following percentages apply to Zachary Company for Year 3 and Year 4: Sales Cost of goods sold Gross margin Selling and administrative expense Interest expense Total expenses Income before taxes Income tax expense Net income ZACHARY COMPANY Income Statements Sales Cost of goods sold Gross margin Selling and administrative expenses Interest expense Total expenses Income before taxes Income tax expense Net income Required Assuming that sales were $515,000 in Year 3 and $585,000 in Year 4, prepare income statements for the two years. $ Year 4 100.0 % 61.1 38.9 26.5 2.7 29.2 9.7 5.5 4.2 % Year 4 0 0 0 $ Year 3 100.0 % 63.9 36.1 20.3 1.9 Year 3 22.2 13.9 7.2 6.7 % 0 0 0
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