The president is also concerned that administrative

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Reference no: EM13573257

A comparative income statement is given below for Ryder Company:

Ryder Company
Comparative Income Statement

This Year    Last Year   
  Sales $ 7,390,000
$ 5,542,500
  Cost of goods sold
4,990,700

3,508,500







  Gross margin

2,399,300



2,034,000









  Selling and administrative expenses:





      Selling expenses
1,479,500

1,075,000
      Administrative expenses
710,500

617,500







  Total selling and administrative expenses
2,190,000

1,692,500







  Net operating income
209,300

341,500
  Interest expense
101,000

87,000







  Net income before taxes $

108,300


$

254,500










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. (Input all amounts as positive values. Round your answers to 1 decimal place. Due to rounding, figures may not fully reconcile down a column.)

Ryder Company
Comparative Income Statement

        This Year
       Last Year
  Sales %
%
  Cost of goods sold %
%





  Gross margin %
%





  Selling and administrative expenses:



       Selling expenses %
%
       Administrative expenses %
%





  Total selling and administrative expenses %
%





  Net operating income %
%
  Interest expense %
%





  Net income before taxes %
%






Reference no: EM13573257

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