McKenzie Sales, Ltd. Comparative Income Statement This Year Last Year Sales ..... $8,000,000 $6,000,000 Cost of goods sold.. Gross margin ... 4,984,000 3,516,000 3,016,000 2,484,000 Selling and administrative expenses: Selling expenses Administrative expenses. 1,480,000 1,092,000 712,000 618,000 1,710,000 Total expenses 2,192,000 824,000 774,000 Net operating income Interest expense .... 96,000 $ 728,000 84,000 $ 690,000 Net income before taxes
McKenzie Sales, Ltd. Comparative Income Statement This Year Last Year Sales ..... $8,000,000 $6,000,000 Cost of goods sold.. Gross margin ... 4,984,000 3,516,000 3,016,000 2,484,000 Selling and administrative expenses: Selling expenses Administrative expenses. 1,480,000 1,092,000 712,000 618,000 1,710,000 Total expenses 2,192,000 824,000 774,000 Net operating income Interest expense .... 96,000 $ 728,000 84,000 $ 690,000 Net income before taxes
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 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...
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Common-Size Income Statement
A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto:
Members of the company’s board of directors are surprised to see that net income increased by only $38,000 when sales increased by $2,000,000.
Required:
1. Express each year’s income statement in common-size percentages. Carry computations to one decimal place.
2. Comment briefly on the changes between the two years.
Transcribed Image Text:McKenzie Sales, Ltd.
Comparative Income Statement
This Year
Last Year
Sales .....
$8,000,000
$6,000,000
Cost of goods sold..
Gross margin ...
4,984,000
3,516,000
3,016,000
2,484,000
Selling and administrative expenses:
Selling expenses
Administrative expenses.
1,480,000
1,092,000
712,000
618,000
1,710,000
Total expenses
2,192,000
824,000
774,000
Net operating income
Interest expense
....
96,000
$ 728,000
84,000
$ 690,000
Net income before taxes
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