Question
Sundahl Companys income statements for the past 2 years are as follows: Sundahl Company Income Statements For the Years 1 and 2 Year 1 Year
Sundahl Companys income statements for the past 2 years are as follows:
Sundahl Company | ||
Income Statements | ||
For the Years 1 and 2 | ||
| Year 1 | Year 2 |
Sales | $2,016,000.00 | $1,816,000.00 |
Less: Cost of goods sold | ($1,409,000.00) | ($1,209,000.00) |
Gross margin | $607,000.00 | $607,000.00 |
Less operating expenses: |
| |
Selling expenses | ($308,000.00) | ($308,000.00) |
Administrative expenses | -99,200.00 | -110,000.00 |
Operating income | $199,800.00 | $189,000.00 |
Less: |
| |
Interest expense | ($50,800.00) | ($40,000.00) |
Net income before taxes | $149,000.00 | $149,000.00 |
Prepare a common-size income statement for Year 2 by expressing each line item for Year 2 as a percentage of that same line item from Year 1.
Refer to the list below for the exact wording of an account title within your income statement.
|
Prepare a common-size income statement for Year 2 by expressing each line item for Year 2 as a percentage of that same line item from Year 1. (Note: Enter all expenses as positive numbers. Enter net loss as a negative number, if applicable. Round answers to the nearest tenth of a percent. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries.)
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