Convert the following two years of income statements from the Maytag Corporation into common-size statements. The dollar figures are in thousands. What does converting to a common sizereveal?

Transcribed Image Text:

Consolidated Statements of Income: Maytag Corporation 1992 1991 Net sales Cost of sales Gross profits Selling, general, & admin. expenses Reorganization expenses Operating income Interest expense Othcr-nct Income before taxes and S3,041,223 2,339.406 701,817 528,250 95,000 78,567 (75,004) 3,983 7,546 $2,970,626 2,254,221 716,405 524,898 0 191,507 100 100 (75,159) 7,069 123,417 accounting changes Income taxes Income before accounting changes Effects of accounting changes (15,900) (8,354) (307,000) 44,400) 79,017 0 for postretirement benefits Net income (loss) S(315,354)