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, Limited, of Toronto: ...

90.2K

Verified Solution

Question

Accounting

A comparative income statement is given below for McKenzie Sales, Limited, of Toronto:

McKenzie Sales, Limited Comparative Income Statement
This Year Last Year
Sales $ 7,350,000 $ 5,586,000
Cost of goods sold 4,760,000 3,514,000
Gross margin 2,590,000 2,072,000
Selling and administrative expenses:
Selling expenses 1,398,000 1,072,000
Administrative expenses 710,500 612,000
Total expenses 2,108,500 1,684,000
Net operating income 481,500 388,000
Interest expense 100,000 91,000
Net income before taxes $ 381,500 $ 297,000

Members of the companys board of directors are surprised to see that net income increased by only $84,500 when sales increased by $1,764,000.

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).)

- sales

- csot of goods sold

- gross margin

- selling and administrative expenses

selling expenses

administrative expenses

- total selling and administrative expenses

- net operating income

- interest expenses

- 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!
Become a Member

Other questions asked by students

Biology
1.2K views

Explain how the humoral immunity and cellular immunity work together.

Biology
1.2K views

The foodborne disease that involves a neurotoxin that prevents acetylcholine release from motor neurons at...

Physics
1.2K views

A load of 5 kg hangs from one end of a vertical wire of length...

Geometry
1.2K views

1 What is the value of x if sin 60 cos x 10

Basic Math
1.2K views

5.2.7-TIn a recent study on world happiness, participants were asked to evaluate their current lives...

Statistics
1.2K views

A business has a budget of 1 890 to spend on updating their technology Each...

Accounting
1.2K views

Question 51 Which of the following is an example of a non-current liability?...

Accounting
1.2K views

For our homework in chapter 6, we will do lots of work with numbers and...

Accounting
1.2K views

Question 20- Problem 13-81 (LO 13-4 ) (Static) The following information applies to the questions...

Accounting
1.2K views

Johnson Inc.s non-strategic investment portfolio at December 31, 2022, consisted of the following: Debt and...

Accounting
1.2K views

16. Home Appliances Co. wants to introduce a new digital display, laser driven iron to...

Accounting
1.2K views

Many times during the course of an audit I would be looking for the "Red...