Compute the percentage increase in net sales

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Question - Comparative data for the Spencer Company for the two-year period 2010-2011 are as follows:

Income Statement Data

 

2010

2011

Gross sales

$2,760,000

$1,800,000

Sales returns and allowances

240,000

300,000

Net sales

$2,520,000

$1,500,000

Cost of goods sold

1,575,000

870,000

Gross profit on sales

$945,000

$630,000

Operating Expenses

615,000

480,000

Net income

$330,000

$150,000

Form the given data, compute the following:

(1) Percentage increase in net sales.

(2) Percentage increase in cost of goods sold.

(3) Percentage of net income to net sales for 2010 and 2011.

(4) Dollar increase in net income.

(5) Percentage increase in net income.

(6) Operating expense as a percentage of net sales for 2010 and 2011.

Reference no: EM132440760

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