A comparative income statement is given below for Mckenzie Sales, Ltd., of Toronto: Last Year...
60.1K
Verified Solution
Link Copied!
Question
Accounting
A comparative income statement is given below for Mckenzie Sales, Ltd., of Toronto: Last Year $5,608,800 3,506,000 2,102,800 McKenzie Sales, Ltd. Comparative Income Statement This Year Sales $7,380,000 Cost of goods sold 4,620,000 Gross margin 2,760,000 Selling and administrative expenses: Selling expenses 1,383,000 Administrative expenses 704,500 Total expenses 2,087,500 Net operating income 672,500 Interest expense 97,000 Net income before taxes $ 575,500 1,075,000 608,500 1,683,500 419,300 94,000 $ 325, 300 Members of the company's board of directors are surprised to see that net income increased by only $250,200 when sales increased by $1,771,200. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) This Year Last Year Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes
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!
