Problem 2 (Trend Analysis) The following common size income statements are available for Zamboanga Corporation for the two years ended December 31, 2020 and 2021.
Problem 2 (Trend Analysis) The following common size income statements are available for Zamboanga Corporation for the two years ended December 31, 2020 and 2021. 2021 2020 Sales 100% 100% Cost of Sales 55% 70% Gross profit on sales 45% 30% Operating expenses (including income tax expense) 20% 18% Net Income 25% 12% Trend percentage for sales are as follows: 2022 - 130% 2021 - 100% Required: What should be the trend percentage for gross profit on sales for 2021? Show the computation
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
