Exercise 17-4 Common-size percent computation and interpretation LO P2

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, 2017 and 2016
	2017		2016
	$	%	$	%
Sales	$735,000		$670,000
Cost of goods sold	568,100		284,400
Gross profit	166,900		385,600
Operating expenses	128,000		275,600
Net income	$38,900		$110,000

Has the company's situation improved in the most recent year?

multiple choice

• Yes

• No