Question: A comparative income statement is given below for Ryder Company: Ryder Company Comparative Income Statement This Year Last Year Sales $ 7,350,000 $ 5,512,500 Cost

A comparative income statement is given below for Ryder Company:

Ryder Company
Comparative Income Statement
This Year Last Year
Sales $ 7,350,000 $ 5,512,500
Cost of goods sold 4,990,800 3,508,000






Gross margin

2,359,200

2,004,500







Selling and administrative expenses:
Selling expenses 1,480,000 1,078,000
Administrative expenses 706,500 608,000






Total selling and administrative expenses 2,186,500 1,686,000






Net operating income 172,700 318,500
Interest expense 100,000 92,000






Net income before taxes $

72,700

$

226,500















The president is concerned that net income is down even though sales have increased during the year. The president is also concerned that administrative expenses have increased because the company made a concerted effort to cut waste out of the organization.


Required:
1.

Express each year's income statement in common-size percentages. (Input all amounts as positive values. Round your intermediate and final answer to 1 decimal places. Omit the "%" sign in your response.)


This Year Last Year
Sales % %
Cost of goods sold % %




Gross margin % %




Selling and administrative expenses:
Selling expenses % %
Administrative expenses % %




Total selling and administrative expenses % %




Net operating income % %
Interest expense % %




Net income before taxes % %









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