Question

Prepare​ common-size income statements. ​(Round your answers to one decimal​ place, X.X%.) Jeter VerdeNet sales Revenue $8,000 $19,000Cost of Good sold 4,872 13,946Other expanses 2,632 4,123Net Income 496 931

Answer 1

Step-by-step explanation:

Jeter Versus Verde

Common-size income statements (Partial)

Year Ended December 31

Particulars Jeter Verde

Net sales Revenue 100% 100%

Cost of Good sold 60.9% 73.4%

Other expenses 32.9% 21.7%

Net income 6.2% 4.9%

The workings are shown below

Particulars Jeter Verde

Net sales Revenue $8,000 $19,000

Cost of Good sold $4,872 $13,946

Other expenses $2,632 $4,123

Net income $496 $931

The percentage is

= Items ÷ revenues × 100

For cost of goods sold for Jeter, it would be

= ($4,872 ÷ $8,000) × 100

= 60.9%

The same formula is applied for other items also.