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Preparing Common-Size Income Statements by Using Base Period Horizontal Analysis Scherer Company provided the following income statements for its first 3 years of operation: Scherer
Preparing Common-Size Income Statements by Using Base Period Horizontal Analysis
Scherer Company provided the following income statements for its first 3 years of operation:
Scherer Company Income Statements Years of Operation | |||
Year 1 | Year 2 | Year 3 | |
Net sales | $1,000,000 | $1,150,000 | $1,310,000 |
Less: Cost of goods sold | (297,000) | (321,000) | (367,000) |
Gross margin | $703,000 | $829,000 | $943,000 |
Less: | |||
Operating expenses | (426,000) | (493,000) | (589,500) |
Income taxes | (109,000) | (120,800) | (134,600) |
Net income | $168,000 | $215,200 | $218,900 |
Required:
Prepare common-size income statements by using Year 1 as the base period. (Note: Enter all amounts as positive numbers, except for a net loss. Enter net loss as a negative number, if applicable. Round answers to the nearest whole percentage.)
Scherer Company | ||||||
Common-Size Income Statements | ||||||
Years of Operation | ||||||
Year 1 | Year 1 | Year 2 | Year 2 | Year 3 | Year 3 | |
Dollars | Percentage | Dollars | Percentage | Dollars | Percentage | |
Net sales | $1,000,000 | fill in the blank 1% | 1,150,000 | fill in the blank 2% | $1,310,000 | fill in the blank 3% |
Less: Cost of goods sold | (297,000) | fill in the blank 4 | (321,000) | fill in the blank 5 | (367,000) | fill in the blank 6 |
Gross margin | $703,000 | fill in the blank 7 | $829,000 | fill in the blank 8 | $943,000 | fill in the blank 9 |
Less: | ||||||
Operating expenses | (426,000) | fill in the blank 10 | (493,000) | fill in the blank 11 | (589,500) | fill in the blank 12 |
Income taxes | (109,000) | fill in the blank 13 | (120,800) | fill in the blank 14 | (134,600) | fill in the blank 15 |
Net income | $168,000 | fill in the blank 16 | $215,200 | fill in the blank 17 | $218,900 | fill in the blank 18 |
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