A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement This Year Last Year Sales $ 7,360,000 $ 5,593,600 Cost of goods sold 4,760,000 3,512,000 Gross margin 2,600,000 2,081,600 Selling and administrative expenses: Selling expenses 1,387,000 1,073,500 Administrative expenses 705,500 609,000 Total expenses 2,092,500 1,682,500 Net operating income 507,500 399,100 Interest expense 96,000 88,000 Net income before taxes $ 411,500 $ 311,100 Members of the company’s board of directors are surprised to see that net income increased by only $100,400 when sales increased by $1,766,400. 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).)
A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement This Year Last Year Sales $ 7,360,000 $ 5,593,600 Cost of goods sold 4,760,000 3,512,000 Gross margin 2,600,000 2,081,600 Selling and administrative expenses: Selling expenses 1,387,000 1,073,500 Administrative expenses 705,500 609,000 Total expenses 2,092,500 1,682,500 Net operating income 507,500 399,100 Interest expense 96,000 88,000 Net income before taxes $ 411,500 $ 311,100 Members of the company’s board of directors are surprised to see that net income increased by only $100,400 when sales increased by $1,766,400. 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).)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 40E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...
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A comparative income statement is given below for McKenzie Sales, Limited, of Toronto:
McKenzie Sales, Limited Comparative Income Statement |
||
This Year | Last Year | |
---|---|---|
Sales | $ 7,360,000 | $ 5,593,600 |
Cost of goods sold | 4,760,000 | 3,512,000 |
Gross margin | 2,600,000 | 2,081,600 |
Selling and administrative expenses: | ||
Selling expenses | 1,387,000 | 1,073,500 |
Administrative expenses | 705,500 | 609,000 |
Total expenses | 2,092,500 | 1,682,500 |
Net operating income | 507,500 | 399,100 |
Interest expense | 96,000 | 88,000 |
Net income before taxes | $ 411,500 | $ 311,100 |
Members of the company’s board of directors are surprised to see that net income increased by only $100,400 when sales increased by $1,766,400.
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).)
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