Name: Your score: 0% The comparative income statements of Company follow. Calculate trend percents for all components of the income statements using 2022 as the base year. Each formula must include the ROUND function, rounding all percents to 2 decimal places. (XXX.XX%) Company Comparative Income Statements For Years Ended December 31, 2026-2022 2026 2025 2024 2023 2022 Sales $50,000 $45,000 $42,000 $36,000 $31,000 Cost of goods sold 29,000 28,000 22,000 22,000 20,000 Gross profit 21,000 17,000 20,000 14,000 11,000 Operating expenses 12,000 11,000 11,000 8,000 7,000 Net income $9,000 $6,000 $9,000 $6,000 $4,000 2026 2025 2024 2023 2022 Sales Cost of goods sold Gross profit Operating expenses Net income
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The formula to calculate trend percent is: \[ \text{Trend Percent} = \left( \frac{\text{Year of Interest Amount}}{\text{Base Year Amount}} \right) \times 100 \] Show more…
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A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: McKenzie Sales, Ltd. Comparative Income Statement This Year Sales $7,300,000 Cost of goods sold $4,780,000 Gross margin $2,520,000 Selling and administrative expenses: Selling expenses $1,399,000 Administrative expenses $711,000 Total expenses $2,110,000 Net operating income $410,000 Interest expense $103,000 Net income before taxes $307,000 Last Year Sales $5,548,000 Cost of goods sold $3,510,500 Gross margin $2,037,500 Selling and administrative expenses: Selling expenses $1,081,500 Administrative expenses $613,000 Total expenses $1,694,500 Net operating income $343,000 Interest expense $91,000 Net income before taxes $252,000 Members of the company's board of directors are surprised to see that net income increased by only $55,000 when sales increased by $1,752,000. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) This Year Sales 100.0% Cost of goods sold 65.5% Gross margin 34.5% Selling and administrative expenses: Selling expenses 19.1% Administrative expenses 9.7% Total selling and administrative expenses 28.9% Net operating income 5.6% Interest expense 1.4% Net income before taxes 4.2% Last Year Sales 100.0% Cost of goods sold 63.3% Gross margin 36.7% Selling and administrative expenses: Selling expenses 19.5% Administrative expenses 11.0% Total selling and administrative expenses 30.5% Net operating income 6.2% Interest expense 1.6% Net income before taxes 4.5%
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