Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. exercise 15-1 common-size income statement [lo15-1

Exercise 15-1 Common-Size Income Statement [LO15-1] A comparative income statement is given...

50.1K

Verified Solution

Question

Accounting

Exercise 15-1 Common-Size Income Statement [LO15-1]

A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto:

McKenzie Sales, Ltd. Comparative Income Statement
This Year Last Year
Sales $ 7,370,000 $ 5,601,200
Cost of goods sold 4,610,000 3,507,000
Gross margin 2,760,000 2,094,200
Selling and administrative expenses:
Selling expenses 1,382,000 1,074,500
Administrative expenses 706,000 609,000
Total expenses 2,088,000 1,683,500
Net operating income 672,000 410,700
Interest expense 102,000 93,000
Net income before taxes $ 570,000 $ 317,700

Members of the companys board of directors are surprised to see that net income increased by only $252,300 when sales increased by $1,768,800.

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).)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Suppose Jamal is studying poverty in his economics class, and he wants to compare the proportion...

Statistics
Q

How can television and computers be used as an educational medium for school-age children?

Psychology
Q

Discussion Question 1: Describe, in detail, Metacognition and all its components.

Biology
Q

Period 1 2 3 Present Value of an Annuity of 1 8 9 0 926...

Basic Math
Q

Consider this situation: Pistol Pete gained a pretty good reputation as a high school basketball...

Basic Math
Q

Question 24 Solve 8y2 10y 3 y Question Help Message instructor

Calculus
Q

CURRENT OBJECTIVE Use the washer method to find the volume of a solid of revolution...

Calculus
Q

Rex and Dena are married and have two children, Michelle (age 7) and Nancy (age...

Accounting
Q

Cul de los siguientes no ocurre con el costeo por procesos? Grupo de opciones...

Accounting
Q

Activity Rates Zapato Company produces two types of boots: vaquero and vaquera. There are four...

Accounting
Q

The relationship between the volume of goods sold and inventory, computed by dividing the cost...

Accounting
Q

pls help BO Problem 4-12 (Algo) Contrasting ABC...

Finance