The following income statements were drawn from the annual reports of Toner Sale

Question

The following income statements were drawn from the annual reports of Toner Sales Company: 20188 2019* Net sales Cost of goods sold Gross margin Less: Operating expense $ 426,700 $521,700 (285,889) (297,36%) 224, 331 140,811 Selling and administrative expenses Net Income (72,539)(88.689 $ 68,272 $ 135,642 All dollar amounts are reported in thousands The president's message in the company's annual report stated that the company had implemented a strategy to increase market share by spending more on advertising. The president indicated that prices held steady and sales grew as expected. Prepare common size income statements and make appropriate references to the differences between 2018 and 2019. (Round all intermediate calculations and final answers for percentage values to 1 decimal place. Enter answers in millions, not in dollar.) TONER SALES COMPANY Income Statement For the Years Ended December 31, 2018 and 2019 2018 2019 et sales Cost of goods sold Gross margin Operating expenses Operating income et income

Explanation / Answer

TONER SALES COMPANY

Income statement

For the years ended december 31,2018 and 2019

In 2019 By advertising expense increased sales is also increase as expected and net income will also increased so we accept advertising expense

2018 2019 Net Sales 426700 100% 521700 100% Cost of goods sold 285889 67% 297369 57% Gross margin 140811 33% 224331 43% Operating expenses 72539 17% 88689 17% Operating income 68272 16% 135642 26% Net income 68272 16% 135642 26%

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.