The following percentages apply to Rooney Company for Year 3 and Year 4: ...
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Accounting
The following percentages apply to Rooney Company for Year 3 and Year 4:
Year 4
Year 3
Sales
100.0 %
100.0 %
Cost of goods sold
61.1
64.1
Gross margin
38.9
35.9
Selling and administrative expense
26.2
20.5
Interest expense
2.4
1.9
Total expenses
28.6
22.4
Income before taxes
10.3
13.5
Income tax expense
5.3
7.0
Net income
5.0 %
6.5 %
Required
Assuming that sales were $505,000 in Year 3 and $600,000 in Year 4, prepare income statements for the two years.
The following percentages apply to Rooney Company for Year 3 and Year 4: Assuming that sales were $505,000 in Year 3 and $600,000 in Year 4, prepare income statements for the two years
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The following percentages apply to Rooney Company for Year 3 and Year 4: Assuming that sales were $505,000 in Year 3 and $600,000 in Year 4, prepare income statements for the two years
