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?

Complete this question by entering your answers in the tabs below.

• 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	$740,000		$625,000
Cost of goods sold	560,300		290,800
Gross profit	179,700		334,200
Operating expenses	128,200		218,500
Net income	$51,500		$115,700

Using the common-size percentages, which item is most responsible for the decline in net income?

Using the common-size percentages, which item is most responsible for the decline in net income?