A comparative income statement is given below for McKenzie Sales, Limited, of Toronto:McKenzie Sales, LimitedComparative Income StatementSalesCost of goods soldGross marginSelling and administrative expenses:Selling expensescome Statement LAdministrative expensesTotal expensesNet operating incomeInterest expenseNet income before taxes$This Year7,350,0004,750,0002,600,0001,386,000708,0002,094,000506,00098,000$408,000Last Year.$ 5,586,0003,512,5002,073,5001,081,500608,0001,689,500384,00089,000$ 295,000Members of the company's board of directors are surprised to see that net income increased by only $113,000 when sales increasedby $1,764,000.Required:1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e.. A comparative income statement is given below for McKenzie Sales, Limited, of Toronto:McKenzie Sales, LimitedComparative Income StatementSalesCost of goods soldGross marginSelling and administrative expenses:Selling expensescome Statement LAdministrative expensesTotal expensesNet operating incomeInterest expenseNet income before taxes$This Year7,350,0004,750,0002,600,0001,386,000708,0002,094,000506,00098,000$408,000Last Year.$ 5,586,0003,512,5002,073,5001,081,500608,0001,689,500384,00089,000$ 295,000Members of the company's board of directors are surprised to see that net income increased by only $113,000 when sales increasedby $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..

Lets understand the basics.Common size percentage is a ratio which derive each items of the income…

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 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 This Year % % % % % % % % % Last Year % % % % % % % % %

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter12: Financial Statements, Closing Entries, And Reversing Entries

Section: Chapter Questions

Problem 3E

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Identify each of the following items relating to sections of an income statement as Revenue from Sales (S), Cost of Goods Sold (CGS), Selling Expenses (SE), General Expenses (GE), Other Income (OI), or Other Expenses (OE). a. Utilities Expense b. Advertising Expense c. Purchases Discounts d. Sales Returns and Allowances e. Interest Income f. Freight In g. Depreciation Expense, Equipment h. Interest Expense i. Rent Expense j. Sales
The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and Allowances: $34,890; COGS: $120,470; Sales Discounts: $44,760. Given this information, what is the Gross Profit Margin Ratio for Sunrise Motors? (Round to the nearest whole percentage.)
A 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: Administrative expenses Selling expenses Total expenses Net operating income Interest expense Net income before taxes This Year $ 7,310,000 4,620,000 2,690,000 Last Year $ 5,555,600 3,515,500 2,040,100 1,386,000 1,079,500 709,500 611,000 2,095,500 1,690,500 594,500 98,000 $ 496,500 349,600 91,000 $ 258,600 Members of the company's board of directors are surprised to see that net income increased by only $237,900 when sales increased by $1,754,400. 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).) × Answer is complete but not entirely correct. This Year Last Year Sales 100.0 % 100.0 % Cost of goods sold 63.5 % 63.2 % Gross margin 36.5 % 36.8 % Selling and…
A 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 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 This Year $ 7,400,000 4,730,000 2,670,000 This Year The company's board of directors is surprised to see net income increased by only $124,000 when sales increased by $1,776,000. Required: 1. Express each year's income statement in common-size percentages. Note: Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3). % % 0.0% 1,393,000 711,000 2,104,000 566,000 104,000 $ 462,000 % % 0.0 % 0.0 % % 0.0 % Last…
A 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 $ 7,350,000 4,610,000 2,740,000 1,390,000 706,000 2,096,000 644,000 101,000 $ 543,000 Last Year $ 5,586,000 3,511,500 2,074,500 1,079,500 613,500 1,693,000 381,500 87,000 $ 294,500 Members of the company's board of directors are surprised to see that net income increased by only $248,500 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).)
A 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 incone before taxes Sales Cost of goods sold Gross margin Selling and administrative expenses Selling expenses Administrative expenses Total selling and administrative expenses This Year $ 7,360,000 4,740,000 2,620,000 Net operating income Interest expense Net income before taxes This Year Members of the company's board of directors are surprised to see that net income increased by only $134,900 when sales increased by Required: 1 Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (ie.. 0.1234 should be entered as 12.3).) 0.0 % % % 0.0 % 0.0 % 1,374,000 703,000 2,077,000 % 543,000 100,000 0443,000 0.0 % Last Year…
A comparative income statement follows for Martine Ltd. of Montreal: MARTINE LTD. Comparative Income Statement For the Years Ended October 31, Year 1 and Year 2 Sales Less: Cost of goods sold Gross margin Less: Operating expenses: Selling expenses Administrative expenses Total expenses Net operating income Less: Interest expense Net income before taxes Year 2 Year 1 S s 8,050,000 5,095,650 2,954,350 1,529,500 756,700 2,286,200 668,150 136,850 531,300 $ 6,050,000 3,605,800 2,444,200 1,131,350 726,000 1,857,350 586,850 114,950 $ 471,900 Members of the company's board of directors are surprised to see that net income increased by only $59,400 when sales increased by $2,000,000. Required: 1. Express each year's income statement in common-size percentages. (Round your answers to 1 decimal place.)
es A 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 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income This Year $ 7,390,000 4,630,000 2,760,000 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. Interest expense Net income before taxes 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 % % 0.0% Last Year $ 5,616,400 3,512,000 2,104,400 % % 0.0 % 0.0 % % 0.0%…
A 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 $ 7,300,000 4,640,000 2,660,000 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 1,391,000 702,500 2,093,500 566,500 106,000 $ 460,500 Members of the company's board of directors are surprised to see that net income increased by only $204,000 when sales increased by $1,752,000. 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).) This Year % % % Last Year $…
A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: McKenzie Sales, Ltd. Comparative Income Statement This Year Last Year $7,350, 000 4,630,000 2,720, 000 $5,586,000 3,510, 000 2,076,000 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses 1,074,500 615, 500 Total expenses Net operating income Interest expense 1, 382, 000 703,500 2,085,500 634,500 105, 000 1,690, 000 386, 000 91, 000 Net income before taxes 529, 500 $4 295, 000 Members of the company's board of directors are surprised to see that net income increased by only $234,500 when sales increased by $1,764,000. %24
Consider the following income statement data from the Ross Company: Current Year Prior Year $962,500 $720,000 582,960 440,820 182,175 156,420 104,100 79,000 13,533 8,532 Sales revenue Cost of goods sold Selling expenses Administrative expenses Income tax expense Prepare a comparative income statement, showing increases and decreases in dollars and in percentages. (Round percentages to one decimal.) Ross Company Comparative Income Statements Sales revenue Cost of goods sold Gross profit on sales Operating expenses Selling expenses Administrative expenses Total Income before income taxes Income tax expense Net income $ $ LA Current Year Prior Year (Decrease) $ $ Increase Percent Change $ LA
The comparative financial statements for Chinook Company are below Income statement Sales revenue Cost of goods sold Gross profit Operating expenses and interest expense Pretax income Income tax Net income Balance sheet Cash Year 2 Year 1 $ 194,000 $ 168,000 113,000 100,400 81,000 67,600 56,400 53,200 24,600 14,400 8,400 4,200 $ 16,200 $ 10,200 $ 4,400 $7,200 14,200 18,200 Accounts receivable (net) Inventory Property and equipment (net) Total assets Current liabilities (no interest) Long-term liabilities (interest rate: 10%) Common stock ($5 par value, 6,080 shares outstanding) Retained earnings Total liabilities and stockholders' equity 40,400 34,200 45,600 38,400 $ 104,600 $ 98,000 $16,200 $ 17,200 45,200 45,200 30,400 30,400 12,800 5,200 $ $ 98,000 104,600 Assume that the stock price per share is $30 and that dividends in the amount of $4.50 per share were paid during Year 2. Compute the following ratios: Note: Round your answers to 2 decimal places. Enter percentage answers rounded…