A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: ...
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Accounting
A comparative income statement is given below for McKenzie Sales, Limited, of Toronto:
McKenzie Sales, Limited Comparative Income Statement
This Year
Last Year
Sales
$ 7,350,000
$ 5,586,000
Cost of goods sold
4,760,000
3,514,000
Gross margin
2,590,000
2,072,000
Selling and administrative expenses:
Selling expenses
1,398,000
1,072,000
Administrative expenses
710,500
612,000
Total expenses
2,108,500
1,684,000
Net operating income
481,500
388,000
Interest expense
100,000
91,000
Net income before taxes
$ 381,500
$ 297,000
Members of the companys board of directors are surprised to see that net income increased by only $84,500 when sales increased by $1,764,000.
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).)
- sales
- csot of goods sold
- gross margin
- selling and administrative expenses
selling expenses
administrative expenses
- total selling and administrative expenses
- net operating income
- interest expenses
- net income before taxes
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