A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: McKenzie Sales, Ltd. Comparative Income Stat
ement This Year Last Year Sales $ 7,380,000 $ 5,608,800 Cost of goods sold 4,630,000 3,512,500 Gross margin 2,750,000 2,096,300 Selling and administrative expenses: Selling expenses 1,371,000 1,076,500 Administrative expenses 711,000 609,000 Total expenses 2,082,000 1,685,500 Net operating income 668,000 410,800 Interest expense 102,000 92,000 Net income before taxes $ 566,000 $ 318,800 Members of the company’s board of directors are surprised to see that net income increased by only $247,200 when sales increased by $1,771,200.
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).)
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 answer:
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