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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 | $2,000,000.00 | $1,800,000.00 |
Less: Cost of goods sold | (1,400,000.00) | (1,200,000.00) |
Gross margin | $600,000.00 | $600,000.00 |
Less operating expenses: | ||
Selling expenses | $(300,000.00) | $(300,000.00) |
Administrative expenses | (100,000.00) | (110,000.00) |
Operating income | $200,000.00 | $190,000.00 |
Less: | ||
Interest expense | (50,000.00) | (40,000.00) |
Net income before taxes | $150,000.00 | $150,000.00 |
Required:
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: For those boxes in which you must enter subtracted or negative numbers use a minus sign. Round answers to the nearest tenth of a percent.)
Sundahl Company | ||
Income Statement | ||
For Year 2 | ||
Year 2 Amount | Percent of Year 1 Amount | |
Sales | ||
Less: Cost of goods sold | ||
Gross margin | ||
Less operating expenses: | ||
Selling expenses | ||
Administrative expenses | ||
Operating income | ||
Less: | ||
Interest expense | ||
Income before taxes |
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