2,359,200 2,004,500 72,700 226,500 The president is concerned that net income is

Question

2,359,200

2,004,500

72,700

226,500

     The president is concerned that net income is down even though sales have increased during the year. The president is also concerned that administrative expenses have increased because the company made a concerted effort to cut waste out of the organization.

Express each year's income statement in common-size percentages. (Input all amounts as positive values. Round your intermediate and final answer to 1 decimal places. Omit the "%" sign in your response.)

Explanation / Answer

This Year Last Year Sales 100.0% 100.0% Cost of goods sold 67.9% 63.6% Gross margin 32.1% 36.4% Selling and administrative expenses: Selling expenses 20.1% 19.6% Administrative expenses 9.6% 11.0% Total selling and administrative expenses 29.7% 30.6% Net operating income 2.3% 5.8% Interest expense 1.4% 1.7% Net income before taxes 1.0% 4.1%

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

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