Question

Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.)

GOMEZ CORPORATION
Comparative Income Statements
For Years Ended December 31
Current Year Prior Year
Sales$ 720,000 $630,000
Cost of goods sold 565,400 291,000
Gross profit 154,600 339,000
Operating expenses 129,200 268,400
Net income $25,400 $70,600

Answer 1

Answer and Explanation:

The comparative income statements in common size percentage is as follows:

Particulars Current year Present year

Amount % Amount %

Sales $720,000 100 $630,000 100

Less:

Cost of Goods

Sold $565,400 78.53% $291,000 46.19%

Gross Profit $154,600 21.47% $339,000 53.81%

Less:

Operating Expenses $129,200 17.94% $268,400 42.60%

Net Income $25,400 3.53% $70,600 11.21%