Question

 

Common-Size Income Statements
Consider the following income statement data from the Ross Company:

	2013	2012
Sales revenue	$527,000	$452,000
Cost of goods sold	338,000	281,000
Selling expenses	107,000	101,000
Administrative expenses	60,000	54,000
Income tax expense	7,800	5,400

Prepare common-size income statements for each year. Round percentages to one decimal point.

ROSS COMPANY Common-Size Income Statements (Percent of Sales Revenue)
		2013		2012
Sales Revenue		Answer%		Answer%
Cost of Goods Sold		Answer%		Answer%
Answer
Answer%	Answer%
Answer

Selling Expenses	Answer%	Answer%
Administrative Expenses	Answer%	Answer%
Total	Answer%	Answer%
Income before Income Taxes	Answer%	Answer%
Answer

Answer%	Answer%
Answer

Answer%

Answer%

Answer 1

	2013	% of sales	2012	% of sales
Sales Revenue	527,000	100%	452,000	100%
Costs of Goods Sold	338,000	64%	281,000	62%
Gross Profit	189,000	36%	171,000	38%
Selling Expenses	107,000	20%	101,000	22%
Sdministrative Expenses	60,000	11%	54,000	12%
Total Expenses	167,000	32%	155,000	34%
Income before taxes	22,000	4%	16,000	4%
Taxes	7,800	1%	5,400	1%
Net Income	14,200	3%	10,600	2%