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 | $2,005,000.00 | $1,809,000.00 |
3 | Less: Cost of goods sold | (1,401,000.00) | (1,205,000.00) |
4 | Gross margin | $604,000.00 | $604,000.00 |
5 | Less operating expenses: | ||
6 | Selling expenses | $(298,000.00) | $(298,000.00) |
7 | Administrative expenses | (110,400.00) | (121,000.00) |
8 | Operating income | $195,600.00 | $185,000.00 |
9 | Less: | ||
10 | Interest expense | (50,600.00) | (40,000.00) |
11 | Net income before taxes | $145,000.00 | $145,000.00 |
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. Sundahl Companys income statements for the past 2 years are as follows:
X Labels and Amount Descriptions Refer to the list below for the exact wording of an account title within your income statement.
X Common-Size 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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