Use the template below to complete a common size income statement using percent of sales.
Income Statement
Dollars 2012 2011
Net Sales $11,500,000 $10,700,000
Cost of Sales & Operating Expenses:
Cost of Goods Sold $8,200,000 $7,684,000
Depreciation Expense $300,000 $275,000
Selling & Administrative Expense $1,400,000 $1,325,000
Total CGS & Operating Expenses $9,900,000 $9,284,000
Operating Profit $1,600,000 $1,416,000
Other Income:
Dividends and Interest $50,000 $50,000
Total Income from Operations $1,650,000 $1,466,000
Less Interest on Bonds & Liabilities $300,000 $150,000
Income before Income Taxes $1,350,000 $1,316,000
Income Taxes $610,000 $600,000
Net Income $740,000 $716,000
Dividends $90,000 ($132,000)
Transfer to Retained Earnings $650,000 $584,000
Percent of Sales 2012 2011
Balance Sheet
Assets
Liabilities and Equities 2012 2011
Current Liabilities $500,000 $500,000
Accounts Payable $1,000,000 $750,000
Notes Payable $1,500,000 $500,000
Accrued Expenses Payable $250,000 $225,000
Taxes Payable $250,000 $225,000
Total Current Liabilities $3,000,000 $1,700,000
Current Assets
Cash $450,000 $450,000
Marketable Securities $4,000,000 $4,000,000
Accounts Receivable $1,500,000 $800,000
Inventories $50,000 $50,000
Total Current Assets $6,000,000 $5,300,000
Fixed Assets
Land $1,500,000 $1,500,000
Building $500,000 $500,000
Machinery $1,900,000 $1,250,000
Office Equipment $3,900,000 $3,250,000
Total Fixed Assets $7,800,000 $6,500,000
Long-term Liabilities:
First Mortgage Bonds $1,500,000 $1,500,000
Total Long-term Liabilities $1,500,000 $1,500,000
Net Fixed Assets $6,300,000 $5,000,000
Stockholder's Equity
Prepayments and Deferred Charges $600,000 $600,000
Common Stock $600,000 $600,000
Intangible Assets $3,600,000 $3,600,000
Capital Surplus $6,600,000 $5,300,000
Retained Earnings $10,500,000 $8,550,000
Total Stockholders Equity $21,900,000 $18,650,000
Total Liabilities & Equities $31,200,000 $26,850,000
