QUESTION 40

1. A common size income statement analysis would show what figure for the following company:

   	2020	2019
   Net sales	$954,000	$630,485
   Cost of goods sold	$185,400	$186,405
   Gross margin	$768,600	$444,080
   Selling/administrative costs	$257,000	$128,350
   Operating income	$511,600	$315,730
   Income tax expense	$102,320	$63,146
   Net income	$409,280	$252,584

   		The 2020 change in operating income is $195,870
   		The change in gross margin is $324,520
   		The percent change in net income is62.0%
   		2020 operating income (as a percent of net sales) is 53.6%