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Data for Mariner Designs, Inc. follow: EEB (Click the icon to view the data.) Re

ID: 2430402 • Letter: D

Question

Data for Mariner Designs, Inc. follow: EEB (Click the icon to view the data.) Read the requirements. Requirement 1. Prepare a comparative common-size income statement for Mariner Designs, Inc. using the 2018 and 2017 data. Round percentages to one-tenth percent. (Round the percentages to one-tenth percent, X.X%.) Mariner Designs, Inc. Common-Size Income Statement Years Ended December 31, 2018 and 2017 iData Table 2018 2017 Mariner Designs, Inc. Comparative Income Statement Years Ended December 31, 2018 and 2017 Net Sales Revenue Expenses Cost of Goods Sold Selling and Administrative Expenses Other Expenses Total Expenses 2018 2017 Net Sales Revenue $ 430,000 S 375,000 Expenses: Cost of Goods Sold Selling and Administrative Expenses Other Expenses Total Expenses 201,550 188,000 99,350 93,000 6,000 307,900 287,000 $122,100 S 88,000 Net Income 7,000 Requirements Net Income 1. Prepare a comparative common-size income statement for Mariner Designs, Inc. using the 2018 and 2017 data. Round percentages to one-tenth percent. 2. To an investor, how does 2018 compare with 2017? Explain your reasoning. PrintDone Check Answer

Explanation / Answer

Mariner designs inc

Common size statement

Year ended December 31, 2018 and 2017

2018

2017

Net sales Revenue

100%

100%

Expenses:

Cost of goods sold

46.9%

=201550/430000

50.1%

=188000/375000

Selling and administrative expense

23.1%

=99350/430000

24.8%

=93000/375000

Other expenses

1.6%

=7000/430000

1.6%

=6000/375000

Total Expenses

71.6%

=307900/430000

76.5%

=287000/375000

Net income

28.4%

=122100/430000

23.5%

=88000/375000

Mariner designs inc

Common size statement

Year ended December 31, 2018 and 2017

2018

2017

Net sales Revenue

100%

100%

Expenses:

Cost of goods sold

46.9%

=201550/430000

50.1%

=188000/375000

Selling and administrative expense

23.1%

=99350/430000

24.8%

=93000/375000

Other expenses

1.6%

=7000/430000

1.6%

=6000/375000

Total Expenses

71.6%

=307900/430000

76.5%

=287000/375000

Net income

28.4%

=122100/430000

23.5%

=88000/375000