#5

Express the following comparative Income statements in common-size percents. Using the common size percentages, which item is most responsible for the decline in net income? Reason for Income Decline in Net Statement Income 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 $ 795 000 5 655.000 Cost of goods sold 565.400 293 200 Gross pro 229.600 361 800 Operating expenses 130,400 263 600 Net income 599 200 $93200 Reason for Decline in Net Income Express the following comparative Income statements in common-size percents. Using the common-size percentages, which item is most responsible for the decline in net income? Income Statement Reason for Decline W.Net Income Using the common size percentages, which item is most responsible for the decline in net income?