Common-Size Income Statements Consider the following income statement data from the Ross Company: 2013 2012 Sales revenue $525,000 $450,000 Cost of goods sold 336,000 279,000 Selling expenses 107,000 101,000 Administrative expenses 62,000 56,000 Income tax expense 9,800 7,400 Prepare common-size income statements for each year. Note: Round answers to one decimal place (ex: 0.2345 = 23.5%).
Common-Size Income Statements Consider the following income statement data from the Ross Company: 2013 2012 Sales revenue $525,000 $450,000 Cost of goods sold 336,000 279,000 Selling expenses 107,000 101,000 Administrative expenses 62,000 56,000 Income tax expense 9,800 7,400 Prepare common-size income statements for each year. Note: Round answers to one decimal place (ex: 0.2345 = 23.5%).
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 40E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...
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Question
Common-Size Income Statements
Consider the following income statement data from the Ross Company:
2013 | 2012 | |
---|---|---|
Sales revenue | $525,000 | $450,000 |
Cost of goods sold | 336,000 | 279,000 |
Selling expenses | 107,000 | 101,000 |
Administrative expenses | 62,000 | 56,000 |
Income tax expense | 9,800 | 7,400 |
Prepare common-size income statements for each year.
Note: Round answers to one decimal place (ex: 0.2345 = 23.5%).
ROSS COMPANY Common-Size Income Statements (Percent of Sales Revenue) |
||
---|---|---|
2013 | 2012 | |
Sales Revenue | Answer
|
Answer
|
Cost of Goods Sold | Answer
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Answer
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AnswerGross Profit on SalesOperating ExpensesIncome Tax ExpenseNet Income
|
Answer
|
Answer
|
AnswerGross Profit on SalesOperating ExpensesIncome Tax ExpenseNet Income
|
||
Selling Expenses | Answer
|
Answer
|
Administrative Expenses | Answer
|
Answer
|
Total | Answer
|
Answer
|
Income before Income Taxes | Answer
|
Answer
|
AnswerGross Profit on SalesOperating ExpensesIncome Tax ExpenseNet Income
|
Answer
|
Answer
|
AnswerGross Profit on SalesOperating ExpensesIncome Tax ExpenseNet Income
|
Answer
|
Answer
|
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