he following percentages apply to Rooney Company for Year 3 and Year 4: Year 3 100.0 % Sales Cost of goods sold Gross margin Selling and administrative expense Interest expense Total expenses Income before taxes Year 4 100.0 % 61.1 38.9 26.2 2.4 28.6 10.3 64.1 35.9 20.5 1.9 22.4 13.5
he following percentages apply to Rooney Company for Year 3 and Year 4: Year 3 100.0 % Sales Cost of goods sold Gross margin Selling and administrative expense Interest expense Total expenses Income before taxes Year 4 100.0 % 61.1 38.9 26.2 2.4 28.6 10.3 64.1 35.9 20.5 1.9 22.4 13.5
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 15EA: The following select account data is taken from the records of Reese Industries for 2019. A. Use the...
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![The following percentages apply to Rooney Company for Year 3 and Year 4:
Sales
Cost of goods sold
Gross margin
Selling and administrative expense
Interest expense
Total expenses
Income before taxes
Income tax expense
Net income
ROONEY COMPANY
Income Statements
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses
Interest expense
Total expenses
Income before taxes
Income tax expense
Net income
Required
Assuming that sales were $505,000 in Year 3 and $600,000 in Year 4, prepare income statements for the two years.
Year 4
100.0 %
61.1
38.9
26.2
2.4
Year 4
28.6
10.3
5.3
5.0 %
Year 3
100.0 %
64.1
35.9
20.5
1.9
22.4
13.5
7.0
6.5 %
Year 3](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F185d0422-fc06-4ca6-bfba-be5f65451835%2Fe9465937-913a-498e-8303-4ab0a3c13dcc%2F730ib8p_processed.png&w=3840&q=75)
Transcribed Image Text:The following percentages apply to Rooney Company for Year 3 and Year 4:
Sales
Cost of goods sold
Gross margin
Selling and administrative expense
Interest expense
Total expenses
Income before taxes
Income tax expense
Net income
ROONEY COMPANY
Income Statements
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses
Interest expense
Total expenses
Income before taxes
Income tax expense
Net income
Required
Assuming that sales were $505,000 in Year 3 and $600,000 in Year 4, prepare income statements for the two years.
Year 4
100.0 %
61.1
38.9
26.2
2.4
Year 4
28.6
10.3
5.3
5.0 %
Year 3
100.0 %
64.1
35.9
20.5
1.9
22.4
13.5
7.0
6.5 %
Year 3
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