Return to course Business Course Common-Size Income Statements Consider the following income statement data from the Ross Company: 2013 2012 Sales revenue $545,000 $460,000 Cost of goods sold 336,000 279,000 Selling expenses 105,000 99,000 Administrative expenses 70,000 64,000 Income tax expense 17,800 15,400 Prepare common-size income statements for each year. Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). ROSS COMPANY Common-Size Income Statements (Percent of Sales Revenue) 2013 2012 Sales Revenue 100% 100% Cost of Goods Sold 61.7 % 60.7% Gross Profit on Sales . 38.3 % 39.3 % Operating Expenses Selling Expenses 19.3 % 21.5% Administrative Expenses 12.8 % 13.9% Total 6.2 % * 3.9 % * Income before Income Taxes 3.3 % x 3.3 % x Income Tax Expense 2.9 % x 0.5 % x Net Income Check