Prepare a comparative common-size income statement for Marion, Inc for 2017 and 2016 data

Question

(Round percentages to one decimal place.)

Marion, Inc
Comparative Income Statement
Years Ended December 31, 2017 and 2016

2017 2016
Net Sales $ 6,355 $ 4,920
Cost of Goods Sold 3,370 2,200
Gross Profit 2,985 2,720
Operating Expenses:
Selling Expenses 675 580
Administrative Expenses 410 425
Total Operating Expenses 1,085 1,005
Operating Income 1,900 1,715
Other Revenues and (Expenses):
Interest Revenue 0 0
Interest Expense (400 ) (695 )
Total Other Revenues and (Expenses) (400 ) (695 )
Income Before Income Taxes 1,500 1,020
Income Tax Expense 230 210
Net Income $ 1,270 $ 810
What will be an ideal response

Answer 1

Marion, Inc.
Common-Size Income Statement
Years Ended December 31, 2017 and 2016

2017 2016
Net Sales 100.0% 100.0%
Cost of Goods Sold 53.0 44.7
Gross Profit 47.0 55.3
Operating Expenses:
Selling Expenses 10.6 11.8
Administrative Expenses 6.5 8.6
Total Operating Expenses 17.1 20.4
Operating Income 30.0 34.9
Other Revenues and (Expenses):
Interest Revenue 0 0
Interest Expense (6.3 ) (14.1 )
Total Other Revenues and (Expenses) (6.3 ) (14.1 )
Income Before Income Taxes 23.6 20.7
Income Tax Expense 3.6 4.3
Net Income 20.0% 16.5%