Comparative income statements for King Engineering Company for 2012 and 2011 are given below. 1. Prepare common-size
Question:
1. Prepare common-size income statements for King Engineering Company for 2012 and 2011.
2. Return on sales for King Engineering is lower in 2012 than in 2011. What expense or expenses are causing this lowerprofitability?
Transcribed Image Text:
2012 2011 Sales Cost of goods sold. Gross profit on sales Selling and general expenses Operating income. Interest expense. Income before income tax. Income tax expense Net income $ 885,000 (570,000) $ 315,000 (305,000) $ 240,000 (106,000) $ 209,000 (35,000) $ 174,000 (20,000) $136,000 $ 95,000 $ 122,000
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1 2012 2011 Sales 885000 1000 545000 1000 Cost of goods sold 570000 644 305000 560 ...View the full answer
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Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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