Scherer Company provided the following income statements for its first 3 years of operation: Scherer Company Income
Question:
Scherer Company provided the following income statements for its first 3 years of operation:
Scherer Company |
Income Statements |
Years of Operation |
1 | | Year 1 | Year 2 | Year 3 |
2 | Net sales | $1,000,000.00 | $1,100,000.00 | $1,300,000.00 |
3 | Less: Cost of goods sold | (300,000.00) | (310,000.00) | (364,000.00) |
4 | Gross margin | $700,000.00 | $790,000.00 | $936,000.00 |
5 | Less: | | | |
6 | Operating expenses | (421,000.00) | (484,000.00) | (591,500.00) |
7 | Income taxes | (111,600.00) | (122,400.00) | (137,800.00) |
8 | Net income | $167,400.00 | $183,600.00 | $206,700.00 |
| Required: |
| Prepare common-size income statements by using net sales as the base. |
Prepare common-size income statements by using net sales as the base. ( Note : Enter all amounts as positive numbers, except for a net loss. Enter net loss as a negative number, if applicable. Round answers to the nearest whole percentage. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries.)
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger