completed the below table but wanted to make sure I got it correct. Can you please verify? Thank you [1] using common size on income statement : ABC Inc., Income Statement 2020 % 2019 % Sales $126,200 $100,000 Sale returns and allowances 2,426 2,000 Net sales $123,774 $ 98,000 Cost of goods sold 58,800 50,000 Gross profit $ 64,974 $ 48,000 Selling expenses 17,310 15,000 Depreciation expenses 500 500 Salary and wages expenses 5,000 4,000 Rent Expenses 7,000 7,000 Utilities expenses 964 500 Total operating expenses $ 30,774 $ 27,000 Income from operation $ 34,200 $ 21,000 Other Income 1,000 1,000 Income before income tax $ 35,000 $ 22,000 Income tax expenses 12,000 6,000 Net Income $ 23,000 $ 16,000 Interpretation on income statement by using common size analysi
Hello Tutor,
I completed the below table but wanted to make sure I got it correct. Can you please verify? Thank you
[1] using common size on income statement :
ABC Inc.,
Income Statement
|
|
2020 |
% |
2019 |
% |
|
Sales |
$126,200 |
|
$100,000 |
|
|
Sale returns and allowances |
2,426 |
|
2,000 |
|
|
Net sales |
$123,774 |
|
$ 98,000 |
|
|
Cost of goods sold |
58,800 |
|
50,000 |
|
|
Gross profit |
$ 64,974 |
|
$ 48,000 |
|
|
Selling expenses |
17,310 |
|
15,000 |
|
|
|
500 |
|
500 |
|
|
Salary and wages expenses |
5,000 |
|
4,000 |
|
|
Rent Expenses |
7,000 |
|
7,000 |
|
|
Utilities expenses |
964 |
|
500 |
|
|
Total operating expenses |
$ 30,774 |
|
$ 27,000 |
|
|
Income from operation |
$ 34,200 |
|
$ 21,000 |
|
|
Other Income |
1,000 |
|
1,000 |
|
|
Income before income tax |
$ 35,000 |
|
$ 22,000 |
|
|
Income tax expenses |
12,000 |
|
6,000 |
|
|
Net Income |
$ 23,000 |
|
$ 16,000 |
|
Interpretation on income statement by using common size analysis:
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