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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?
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 in Net 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 Cost of goods sold $ 760,000 100.0 $650,000 100.0 560,000 73.7 288,800 Gross profit 200,000 26.3 361,200 Operating expenses 130,400 17.3 255,200 Net income $ 69,600 $ 106,000
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