Chapter 15, problem 15(14) 2A Kasay Company Comparative income statement NEED HE

Question

Chapter 15, problem 15(14) 2A   Kasay Company Comparative income statement

NEED HELP ON FIGURING PERCENTAGES!

KASAY COMPANY Comparative Income Statement For the Years Ended December 31, 2014 and 2013 2014 2013 Amount Percent Amount Percent Sales $ 922,500    $ 820,000    Sales returns and allowances       22,500          20,000    Net sales $ 900,000    $ 800,000    Cost of goods sold      360,000         340,000    Gross profit $ 540,000    $ 460,000    Selling expenses $ 216,000    $ 176,000    Administrative expenses       81,000          72,000    Total operating expenses $ 297,000    $ 248,000    Income from operations $ 243,000    $ 212,000    Other income      135,000          92,000    Income before income tax $ 378,000    $ 304,000    Income tax      270,000         240,000    Net income $ 108,000    $    64,000   

Explanation / Answer

Percentage Change = Dollar Change/Amount of Item in base year *100

Net Sales Percentage = 900000-800000/800000x100 = 12.5%

Cost of Goods Sold PErcent = 360000-340000/340000x100 =5.9%

Gross profit Percent = 540000-460000/460000x1000 = 17.4%

Selling Expense = 216000-176000/176000x100 = 22.7%

Administrative Expense = 81000-72000/72000x100 = 12.5%

Total Operating Expense = 297000-248000/248000x100 = 19.8%

Income From Opeartions = 243000-212000/212000x100 = 14.6%

Other Income = 135000-92000/92000x100 = 46.7%

Income before Income Tax = 378000-304000/304000x100 = 24.3%

Income Tax = 270000-240000/240000x100 = 12.5%

Net Income = 108000-64000/64000x100 = 68.8%

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