Answered: Common-Size Income Statements Consider…

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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Common-Size Income Statements
Consider the following income statement data from the Ross Company:

	Current Year	Previous Year
Sales revenue	$529,000	$454,000
Cost of goods sold	336,000	279,000
Selling expenses	109,000	103,000
Administrative expenses	64,000	58,000
Income tax expense	7,800	5,400

Prepare common-size income statements for each year.

Note: Round answers to one decimal place (ex: 0.2345 = 23.5%).

Note: Compute percentages for each "Total" (do not add prior percentage amounts to arrive at Totals).

ROSS COMPANY Common-Size Income Statements (Percent of Sales Revenue)
	Current Year	Previous Year
Sales Revenue	Answer	Answer
Cost of Goods Sold	Answer	Answer
Answer	Answer	Answer
Answer
Selling Expenses	Answer	Answer
Administrative Expenses	Answer	Answer
Total	Answer	Answer
Income before Income Taxes	Answer	Answer
Answer	Answer	Answer
Answer	Answer	Answer

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