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Preparing Common-Size Income Statements by Using Base Period Horizontal Analysis Jasmine Company provided the following income statements for its first 3 years of operation: Year
Preparing Common-Size Income Statements by Using Base Period Horizontal Analysis
Jasmine Company provided the following income statements for its first 3 years of operation:
Year 1 | Year 2 | Year 3 | ||||
Net sales | $5,000,000 | $4,500,000 | $4,000,000 | |||
Less: Cost of goods sold | (3,000,000) | (3,250,000) | (3,600,000) | |||
Gross margin | $2,000,000 | $1,250,000 | $400,000 | |||
Less: Operating expenses | (1,420,000) | (800,000) | (165,000) | |||
Income taxes | (232,000) | (180,000) | (134,000) | |||
Net income | $348,000 | $270,000 | $101,000 |
Required:
Prepare common-size income statements by using Year 1 as the base period. Round answers to the nearest whole percentage.
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