Question

Compute the component percentages for Rhodes income statement below. (Enter your answer as a percentage rounded to 2 decimal place (i.e. 0.1234 should be entered as 12.34). Enter all answers as positive values.) Compute the component percentages for Rhodes income statement below. (Enter your answer as a percentage rounded to 2 decimal place (i.e. 0.1234 should be entered as 12.34). Enter all answers as positive values.)

RHODES COMPANIES, INC. Consolidated Statements of Earnings (in millions, except per share and percentage data) Fiscal Years Ended on January 30, 2015 % Sales January 31, 2014 % Sales February 1, 2013 % Sales Net sales $48,245 100.00 % $48,289 100.00 % $46,935 100.00 % Cost of sales 31,740 31,576 30,741 Gross margin 16,505 16,713 16,194 Expenses: Selling, general, and administrative 11,078 10,534 9,758 Depreciation 1,547 1,377 1,181 Interest-net 289 206 167 Total expenses 12,914 12,117 11,106 Pre-tax earnings 3,591 4,596 5,088 Income tax provision 1,316 1,715 1,893 Net earnings $2,275 % $2,881 % $3,195 %

Answer 1

Here percentages are calculated on the basis of sales means all items like gross margin and expenses are calculated as % of sales.
Example = Gross margin % = Gross Margin / Sales