comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes This Year $7,390,000 Last Year $5,616,400 4,630,000 3,512,000 2,760,000 2,104,400 1,388,000 705,000 2,093,000 667,000 98,000 $ 569,000 1,074,000 608,000 1,682,000 422,400 86,000 $ 336,400 Members of the company's board of directors are surprised to see that net income increased by only $232,600 when sales increased by $1,773,600. Required: nach year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e.,
comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes This Year $7,390,000 Last Year $5,616,400 4,630,000 3,512,000 2,760,000 2,104,400 1,388,000 705,000 2,093,000 667,000 98,000 $ 569,000 1,074,000 608,000 1,682,000 422,400 86,000 $ 336,400 Members of the company's board of directors are surprised to see that net income increased by only $232,600 when sales increased by $1,773,600. Required: nach year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e.,
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter2: Financial Statements And The Annual Report
Section: Chapter Questions
Problem 2.13MCE
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