Answer:
Explanation:
In common sized income statement , each line item is expressed as a percentage of sales turnover and compared to the percentage industry standard for analysis purpose.
Lyon % Industry %
Revenue 7,500,000 100 100
Cost of goods (4,125,000) 55 61
Gross profit 3,375,000 45 39
Selling expenses (2,250,000) 30 23
Admin Expenses (525,000) 7 10
Total Operating Exp (2,775,000) 37 33
Operating income 600,000 8 6
Other revenue 30,000 0.4 3
Other expenses (7500) 0.1 1
Income before tax 622,500 8.3 8
Income Tax 187,500 2.5 2.5
Net Income 435,000 5.8 5.5
