Question

The consolidated 2019, 2018, and 2017 income statements for Butler Corporation follow.

Butler Corporation

Consolidated Income Statements

(in millions except per share amounts)

1		December 31	December 31	December 31
2		2019	2018	2017
3	Net sales	$25,020.70	$21,970.00	$19,292.20
4	Costs and expenses:
5	Cost of goods sold	(11,946.10)	(10,611.70)	(9,366.20)
6	Selling, general, and administrative	(9,864.40)	(8,721.20)	(7,605.90)
7	Amortization of intangible assets	(303.70)	(265.90)	(208.30)
8	Operating income	$2,906.50	$2,371.20	$2,111.80
9	Interest expense	(572.70)	(586.10)	(613.70)
10	Interest income	88.70	113.70	161.60
11	Income before income taxes	$2,422.50	$1,898.80	$1,659.70
12	Provision for income taxes	834.60	597.10	597.50
13	Net income	$1,587.90	$1,301.70	$1,062.20

Required:

1.	Prepare common size income statements for horizontal analysis (in percentage terms, rounded to one decimal place). You do not need to include the actual dollar amounts shown above.
2.	Indicate what Butler’s 2019, 2018, and 2017 tax rates were on its income before taxes (in percentage terms, rounded to two decimal places).

Labels and Amount Descriptions

Labels
Costs and expenses
Amount Descriptions
Net sales
Net income
Net loss

Answer 1

for formulas and calculations, refer to the image below -