Answer to Question #266377 in Accounting for Another you

Question

A. Prepare Me-me Young Company's Common-size Statement of Financial Performance analysis for the year ended, 2020 given the following information:

-Cost of Goods Sold - 460,000.00

-Gross Profit - 640,000.00

-Net Income - 260,000.00

-Net Sales - 1,100,000.00

-Operating Expenses - 375,000.00

-Operating Income - 265,000.00

-Other Expenses - 5,000.00

Answer 1

Question 266377

Me-me Young Company's Common-size Statement of Financial Performance analysis for the year ended 2020

Net sales = $1100000/1100000*100=100$%

Cost of Goods Sold =$460000/1100000*100=41.82$%

Gross profit = $640000/1100000*100=58.18$%

Operating expenses = $375000/1100000*100=34.09$%

Other expenses =$5000/1100000*100=0.45$%

Operating income = $265000/1100000*100=24.09$%

Net income = $260000/1100000*100=23.64$%