The following percentages apply to Lowther Company for 2011 and 2012. Required Assuming that sales were $500,000

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The following percentages apply to Lowther Company for 2011 and 2012.

2012 2011 Sales 100.0% 100.0% Cost of goods sold Gross margin Selling and administrative expense Interest expense 61.0 6

Required
Assuming that sales were $500,000 in 2011 and $600,000 in 2012, prepare income statements for the two years.

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Fundamental Managerial Accounting Concepts

ISBN: 978-0078110894

6th Edition

Authors: Edmonds, Tsay, olds

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Question Posted: Dec 07, 2011 06:50 AM

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The following percentages apply to Lowther Company for 2011 and 2012. Required Assuming that sales were $500,000

Question:

2012 2011 Sales 100.0% 100.0% Cost of goods sold Gross margin Selling and administrative expense Interest expense 61.0 64.0 39.0 36.0 26.5 20.5 2.5 2.0 Total expenses 29.0 22.5 Income before taxes Income tax expense 10.0 13.5 5.5 7.0 Net income 4.5% 6.5%

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Lowther Company Income Statements 2012 2011 Sales 600000 500000 ...View the full answer

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