Question
CarTrax, Inc. has the following operating incomes: 2017 2016 Net sales 897,000 747,000 COGS 767,000 637,000 Gross margin 130,000 110,000 SG&A 92,000 82,000 Operating Income
CarTrax, Inc. has the following operating incomes:
| 2017 | 2016 | |
| Net sales | 897,000 | 747,000 |
| COGS | 767,000 | 637,000 |
| Gross margin | 130,000 | 110,000 |
| SG&A | 92,000 | 82,000 |
| Operating Income | 38,000 | 28,000 |
Prepare a trend analysis of the income statements (calculate the year-to-year amount and percent change for each of the line items). What does the trend analysis tell you about the company?
Prepare a common-size analysis of the income statements (). What does the common-size analysis tell you about the company?
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
