Express the partial comparative income statements for Davis Company that follow as common-size statements, and comment on the changes from 2009 to 2010. (Round computations to one decimal place.)

Transcribed Image Text:

Davis Company Partial Comparative Income Statements For the Years Ended December 31, 2010 and 2009 2010 2009 Net sales Cost of goods sold Gross margin Selling expenses General expenses Total operating expenses Operating income $212,000 127,200 $ 84,800 $ 53,000 25,440 $ 78,440 $ 6,360 $184,000 119,600 $ 64,400 $ 36,800 18,400 $ 55,200 $ 9,200