I need a step by step explanation and understand why the answer says the 2 expenses total that amount? Here is the problem :Convert the following two years of income statements from the Maytag Corporation into common-size statement. The dollar figures are in thousands. What does converting to a comm size reveal?

Consolidated Statements of Income: Maytag Corporation 1992 % 1991 % Net sales $3,041,223 100 $2,970,626 100 Cost of sales 2,339,406 2,254,221 Gross profits 701,817 716,405 Selling, general, & 528,250 524,898 admin expenses Reorganization 95,000 expenses Operating income 78,567 191,507 Interest expense (75,004) (75,159) Othernet 3983 7069 Income before 7546 123,417 taxes and accounting changes Income taxes (15,900) (44,400) Income before (8354) 79,017 accounting changes Effects of (307,000) accounting changes for postretirement benefits Net income (loss) as (315,354) $ 79,017 |