Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a comparative income statement is given below for

A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: Last Year...

90.2K

Verified Solution

Question

Accounting

image
A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: Last Year $6,000,000 3,516,000 2,484,000 Mckenzie Sales, Ltd. Comparative Income Statement This Year Sales $8,000,000 Cost of goods sold 4,984,000 Gross margin 3,016,000 Selling and administrative expenses: Selling expenses 1,480,000 Administrative expenses 712,000 Total expenses 2,192,000 Net operating income 824,000 Interest expense 96,000 Net income before taxes $ 728,000 1, e92,000 618,000 1,710,000 774,000 84,000 $ 690,000 Members of the company's board of directors are surprised to see that net income increased by only $38,000 when sales increased by $2,000,000 Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (.e., 0.1234 should be entered as 12.3).) 2. Comment briefly on the changes between the two years. This Year Last Year % % 0.0 % 0.01% % Sales Cost of goods sold Gross margin Seling and administrative expenses Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes % S % 0.0 % 0.0 % 0.0 % 0.0 % % 0.0% % 0.0 %

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students