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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
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, |
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| Common- Size | Trend Percentage |
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| Year 2 | Year 1 | Year 2 | Year 1 | Year 2 | Year 1 |
| Sales | $450,000 | $445,000 |
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| Cost of goods sold | 175,000 | 185,000 |
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| Gross profit | $275,000 | $260,000 |
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| Operating expenses | 65,400 | 42,000 |
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| Operating income | $209,600 | $218,000 |
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