Answer:
<u>GOMEZ CORPORATION </u>
<u>Comparative Income Statements</u>
<u> For Years Ended December 31</u>
<u> Current Year Prior Year</u>
<u> $ % $ % </u>
Sales $785,000 100 $640,000 100
Cost of goods sold 568,100 72.4 288,800 45.1
Gross profit 216,900 27.6 351,200 54.9
Operating expenses 130,400 16.6 221,600 34.6
Net income $86,500 11.0 $129,600 20.3
The figure used to calculate the percentages is that of sale revenue. Each figure is expressed as a percentage of sales to determine the percent of expenses , profits etc.
