A comparative income statement is given below for Ryder Company: ...
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Accounting
A comparative income statement is given below for Ryder Company:
Ryder Company Comparative Income Statement
This Year
Last Year
Sales
$
7,330,000
$
5,497,500
Cost of goods sold
4,990,300
3,511,000
Gross margin
2,339,700
1,986,500
Selling and administrative expenses:
Selling expenses
1,471,500
1,079,500
Administrative expenses
711,000
609,000
Total selling and administrative expenses
2,182,500
1,688,500
Net operating income
157,200
298,000
Interest expense
96,000
91,000
Net income before taxes
$
61,200
$
207,000
The president is concerned that net income is down even though sales have increased during the year. The president is also concerned that administrative expenses have increased because the company made a concerted effort to cut waste out of the organization.
Required:
1.
Express each year's income statement in common-size percentages. (Input all amounts as positive values. Round your intermediate and final answer to 1 decimal places. Omit the "%" sign in your response.)
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
%
%
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