👤
Answered

Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.)
GOMEZ CORPORATION
Comparative Income Statements
For Years Ended December 31
Current Year Prior Year
Sales$ 720,000 $630,000
Cost of goods sold 565,400 291,000
Gross profit 154,600 339,000
Operating expenses 129,200 268,400
Net income $25,400 $70,600

Answer :

Answer and Explanation:

The comparative income statements in common size percentage is as follows:

Particulars        Current year           Present year

                     Amount     %                Amount       %

Sales       $720,000  100            $630,000   100

Less:

Cost of Goods                

Sold        $565,400  78.53%     $291,000   46.19%

Gross Profit    $154,600   21.47%      $339,000  53.81%

Less:

Operating Expenses $129,200 17.94%   $268,400  42.60%

Net Income   $25,400   3.53%       $70,600     11.21%

Go Teaching: Other Questions