Solution-Prepare income statements for the two years

Prepare income statements for the two years

Reference no: EM133052028

Question - The following percentages apply to Baird Company for Year 3 and Year 4:

	Year 4	Year 3
Sales	100.0%	100.0%
Cost of goods sold	61.1	63.9
Gross margin	38.9	36.1
Selling and administrative expense	26.4	20.5
Interest expense	2.5	2.1
Total expenses	28.9	22.6
Income before taxes	10.0	13.5
Income tax expense	5.3	7.1
Net income	4.7%	6.4%

Required - Assuming that sales were $510,000 In Year 3 and $580,000 In Year 4, prepare income statements for the two years.

Reference no: EM133052028

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Prepare income statements for the two years

Reference no: EM133052028

Reference no: EM133052028

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