1. Using the information provided for Peterson Bottling Company, complete the Common Size Income Statement calculations....

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1. Using the information provided for Peterson Bottling Company, complete the Common Size Income Statement calculations. Complete the work on this page 2. Calculate the rate of growth in sales between the two years. 3. Do any of the answers suggest problems with Peterson Bottling's operations? Explain why or why not. Peterson Bottling Company Income Statement (000s) Year end 12/31/XX 20X1 Sales Cost of Goods Sold Operating Expenses Gross Profit General and Administrative Earnings after interest Net Income Total Earnings before Income and Tax Interest Expense Selling 3984 Delivery 921 1213 6118 1065 297 768 307 461 21418 14235 7183 Tax Common Size 20X2 22703 15209 7494 4141 1135 1212 6488 1006 311 695 278 417 Common Size 1. Using the information provided for Peterson Bottling Company, complete the Common Size Income Statement calculations. Complete the work on this page 2. Calculate the rate of growth in sales between the two years. 3. Do any of the answers suggest problems with Peterson Bottling's operations? Explain why or why not. Peterson Bottling Company Income Statement (000s) Year end 12/31/XX 20X1 Sales Cost of Goods Sold Operating Expenses Gross Profit General and Administrative Earnings after interest Net Income Total Earnings before Income and Tax Interest Expense Selling 3984 Delivery 921 1213 6118 1065 297 768 307 461 21418 14235 7183 Tax Common Size 20X2 22703 15209 7494 4141 1135 1212 6488 1006 311 695 278 417 Common Size

Answer rating: 100% (QA)

To complete the common size income statement you need to calculate each line item as a percentage of sales for each year This allows analysts to compa... View the full answer