Exercise 13-1 Common-Size Income Statement [LO1]

A comparative income statement is given below for Ryder Company:

Ryder Company Comparative Income Statement
	This Year			Last Year
Sales	$	7,340,000		$	5,505,000
Cost of goods sold		4,990,500			3,512,500
Gross margin		2,349,500			1,992,500
Selling and administrative expenses:
Selling expenses		1,473,500			1,075,500
Administrative expenses		703,500			612,000
Total selling and administrative expenses		2,177,000			1,687,500
Net operating income		172,500			305,000
Interest expense		105,000			91,000
Net income before taxes	$	67,500		$	214,000

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 answers to 1 decimal place. Due to rounding, figures may not fully reconcile down a column.)

Ryder Company Comparative Income Statement
	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	%		%