PROBLEM #9

Required:

Express the following income statement information in common-size percentages and in trend percentages using Year 1 as the base year (round to nearest percentage):

ANSWER:

Boxham Co. Comparative Income Statement For the Years Ended December 31,
		Common- Size	Trend Percentage
	Year 2	Year 1	Year 2	Year 1	Year 2	Year 1
Sales	$450,000	$445,000
Cost of goods sold	175,000	185,000
Gross profit	$275,000	$260,000
Operating expenses	65,400	42,000
Operating income	$209,600	$218,000