A comparative income statement is given below for Ryder Company: The president is concerned that net income
Question:
The president is concerned that net income is down even though sales have increased during the year. The president is also concerned that administrative expenses have increased because the company made a concerted effort to cut fat out of the organization.
Required:
1. Express each years income statement in common-size percentages. Carry computations to one decimal place.
2. Comment briefly on the changes between the twoyears.
Transcribed Image Text:
Ryder Company Comparative Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: This Year Last Year $5,000,000 $4,000,000 3,160,000 2,400,000 1,840,000 1,600,000 900,000 700,00 584,000 1,580,000 1.284.000 316,000 40,000 S 190.000 276,000 Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes 680,000 260,000 70,000
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1 This Year Last Year Sales 1000 1000 Cost of goods sold 632 600 Gross margin 368 400 Selling and ad...View the full answer
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Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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