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Required: Express each income statement component as a percentage of sales, and comment on the trends in each line from 2013 to 2014. (30 points)
| Required: Express each income statement component as a percentage of sales, and comment on the trends in each line from 2013 to 2014. | |||||
| (30 points) | |||||
| 2014 | % Sales | 2013 | % Sales | Comments | |
| Sales | $ 1,000,000 | $ 1,200,000 | |||
| Cost of goods sold | $ 450,000 | $ 600,000 | |||
| Gross margin | $ 550,000 | $ 600,000 | |||
| Operating expenses | $ 600,000 | $ 450,000 | |||
| Net income | $ (50,000) | $ 150,000 | |||
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