Question
2016 2015 Net sales $728,450 $699,312 Cost of goods sold $200,000 $224,000 Gross margin $528,450 $475,312 Selling/administrative costs $120,000 $125,000 Operating income $408,450 $350,312 Income
| 2016 | 2015 | |
| Net sales | $728,450 | $699,312 |
| Cost of goods sold | $200,000 | $224,000 |
| Gross margin | $528,450 | $475,312 |
| Selling/administrative costs | $120,000 | $125,000 |
| Operating income | $408,450 | $350,312 |
| Income tax expense | $77,606 | $66,559 |
| Net income | $330,844 | $283,753 |
A common size income statement analysis would show what figure for the following company:
| A. The 2016 change in operating income is $58,138 | ||
| B. The change in gross margin is $53,138 | ||
| C. 2016 operating income (as a percent of net sales) is 56.1% | ||
| D. The percent change in net income is 16.6% |
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
9781285586618
