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4. The following common size income statement Corporation for the two years ended December 2019, and 2018 are available for Gaea 2019 2018 Sales 100% 100% Cost of sales 55% 70% Gross profit on sales 45% 30% Operating (including income tax expense) Net income expenses 20% 18% 25% 12% The trend percentages for sales are as follows: 2017 130% 2016 100% What should be the trend percentage for gross profit on sales for 2019 A. 58.5% В. 130% С. 150% D. 195% Answer:

4. The following common size income statement Corporation for the two years ended December 2019, and 2018 are available for Gaea 2019 2018 Sales 100% 100% Cost of sales 55% 70% Gross profit on sales 45% 30% Operating (including income tax expense) Net income expenses 20% 18% 25% 12% The trend percentages for sales are as follows: 2017 130% 2016 100% What should be the trend percentage for gross profit on sales for 2019 A. 58.5% В. 130% С. 150% D. 195% Answer:

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 15E
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4. The following common size income statement are available for Gaea Corporation for the two years ended December 2019, and 2018 2019 2018 Sales 100% 100% Cost of sales 55% 70% Gross profit on sales 45% 30% Operating (including income tax expense) expenses 20% 18% 25% 12% Net income The trend percentages for sales are as follows: 2017 130% 100% 2016 What should be the trend percentage for gross profit on sales for 2019 A. 58.5% В. 130% С. 150% D. 195% Answer:
Transcribed Image Text:4. The following common size income statement are available for Gaea Corporation for the two years ended December 2019, and 2018 2019 2018 Sales 100% 100% Cost of sales 55% 70% Gross profit on sales 45% 30% Operating (including income tax expense) expenses 20% 18% 25% 12% Net income The trend percentages for sales are as follows: 2017 130% 100% 2016 What should be the trend percentage for gross profit on sales for 2019 A. 58.5% В. 130% С. 150% D. 195% Answer:
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