Solution-Income statement in common-size percentages

Income statement in common-size percentages

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Reference no: EM13555975

A comparative income statement is given below for Ryder Company:

Ryder Company Comparative Income Statement
	This Year		Last Year
Sales	$	7,350,000	$	5,512,500
Cost of goods sold		4,990,800		3,508,000

Gross margin		2,359,200		2,004,500

Selling and administrative expenses:
Selling expenses		1,480,000		1,078,000
Administrative expenses		706,500		608,000

Total selling and administrative expenses		2,186,500		1,686,000

Net operating income		172,700		318,500
Interest expense		100,000		92,000

Net income before taxes	$	72,700	$	226,500

The president is concerned that net income is down even though sales have increased during the year. The president is also concerned that administrative expenses have increased because the company made a concerted effort to cut waste out of the organization.

Required:

1. Express each year's income statement in common-size percentages

Reference no: EM13555975

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Income statement in common-size percentages

Reference no: EM13555975

Reference no: EM13555975

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