Exercise 17-4 (Algo) Computing and interpreting common-size percents LO P2

Express the following comparative income statements in common-size percents. Using the common-size percents, which item is most responsible for the decline in net income?

Complete this question by entering your answers in the tabs below. Income Reason for Statement Decline in Net Income Express the following comparative income statements in common-size percents. (Round your per decimal place.) GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Year $ Current Year % Prior Year $ Prior Year % Sales $ 770,000 $ 665,000 Cost of goods sold 565,400 288,800 Gross profit 204,600 376,200 Operating expenses 129,200 237,200 Net income $ 75,400 139,000