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The following percentages apply to Rundle Company for 2018 and 2019: 2019 2018 Sales 100.0 % 100.0 % Cost of goods sold 61.0 63.9 Gross
The following percentages apply to Rundle Company for 2018 and 2019:
2019 | 2018 | ||||||
Sales | 100.0 | % | 100.0 | % | |||
Cost of goods sold | 61.0 | 63.9 | |||||
Gross margin | 39.0 | 36.1 | |||||
Selling and administrative expense | 26.4 | 20.7 | |||||
Interest expense | 2.4 | 1.9 | |||||
Total expenses | 28.8 | 22.6 | |||||
Income before taxes | 10.2 | 13.5 | |||||
Income tax expense | 5.7 | 7.2 | |||||
Net income | 4.5 | % | 6.3 | % | |||
Required
Assuming that sales were $515,000 in 2018 and $585,000 in 2019, prepare income statements for the two years.
RUNDLE COMPANY | ||
Income Statements | ||
2019 | 2018 | |
Sales | $585,000ect | $515,000 |
Cost of goods sold | not attempted | not attempted |
Gross margin | 585,000 | 515,000 |
Selling and administrative expenses | not attempted | not attempted |
Interest expense | not attempted | not attempted |
Total expenses | 0 | 0 |
Income before taxes | not attempted | not attempted |
Income tax expense | not attempted | not attempted |
Net income | $0 | $0 |
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