Question

In: Accounting

2010 2009 Sales $ 4,400 $ 3,760 Cost of goods sold 2,500 2,750

	2010	2009
Sales	$ 4,400	$ 3,760
Cost of goods sold	2,500	2,750
Gross margin	1,900	1,010
Operating expenses	750	380
Operating income	1,150	630
Interest expense	250	130
Income before taxes	900	500
Income taxes (25%)	225	125
Net income	$ 675	$ 375

a. In a common-size analysis, what percentage would you show for Income taxes for 2010?

5.50%

-5.60%

18.50%

5.11%

b. In a vertical, common sized analysis, what percentage would you show for Operating expenses for 2009?

10.11%

17.05%

8.80%

10.30%

c.

What percentage of sales was the gross profit margin in 2010?

56.82%

43.18%

26.86%

73.14%

Expert Solution

	2010	%	2009	%
Sales	$ 4,400.00	100.00%	$ 3,760.00	100.00%
Cost of goods sold	$ 2,500.00	56.82%	$ 2,750.00	73.14%
Gross margin	$ 1,900.00	43.18%	$ 1,010.00	26.86%
Operating expenses	$ 750.00	17.05%	$ 380.00	10.11%
Operating income	$ 1,150.00	26.14%	$ 630.00	16.76%
Interest expense	$ 250.00	5.68%	$ 130.00	3.46%
Income before taxes	$ 900.00	20.45%	$ 500.00	13.30%
Income taxes (25%)	$ 225.00	5.11%	$ 125.00	3.32%
Net income	$ 675.00	15.34%	$ 375.00	9.97%

Question a

Correct answer--- 5.11 %

Question b

Correct answer--- 10.11%

Question c

Correct answer---48.18%

ekkarill92 answered 1 year ago

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