Question
Sundahl Companys income statements for the past 2 years are as follows: Sundahl Company Income Statements For the Years 1 and 2 1 Year 1
Sundahl Companys income statements for the past 2 years are as follows: Sundahl Company Income Statements For the Years 1 and 2 1 Year 1 Year 2 2 Sales $2,000,000.00 $1,800,000.00 3 Less: Cost of goods sold (1,400,000.00) (1,200,000.00) 4 Gross margin $600,000.00 $600,000.00 5 Less operating expenses: 6 Selling expenses $(300,000.00) $(300,000.00) 7 Administrative expenses (100,000.00) (110,000.00) 8 Operating income $200,000.00 $190,000.00 9 Less: 10 Interest expense (50,000.00) (40,000.00) 11 Income before taxes $150,000.00 $150,000.00 Required: 1. Prepare a common-size income statement for Year 1 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.) 2. Prepare a common-size income statement for Year 2 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.)
Refer to the list below for the exact wording of an account title within your income statement.
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Add operating expenses | |
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Amount Descriptions | |
Administrative expenses | |
Contribution margin | |
Cost of goods sold | |
Gross margin | |
Income after taxes | |
Income before taxes | |
Interest expense | |
Operating income | |
Sales |
1. Prepare a common-size income statement for Year 1 by expressing each line item as a percentage of sales revenue. (Note: Enter all amounts as positive numbers. 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.)
Sundahl Company |
Income Statement |
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2. Prepare a common-size income statement for Year 2 by expressing each line item as a percentage of sales revenue. (Note: Enter all amounts as positive numbers. 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.) Due to rounding, percentages may not total 100%.
Sundahl Company |
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For Year 2 |
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