A comparative income statement is given below for Ryder Company: - 13237

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A comparative income statement is given below for Ryder Company:

Ryder Company
Comparative Income Statement
  This Year    Last Year   
  Sales $ 5,000,000   $ 4,000,000  
  Cost of goods sold   3,160,000     2,400,000  
 





  Gross margin  

1,840,000

   

1,600,000

 
 





  Selling and administrative expenses:            
      Selling expenses   900,000     700,000  
      Administrative expenses   680,000     584,000  
 





  Total selling and administrative expenses   1,580,000     1,284,000  
 





  Net operating income   260,000     316,000  
  Interest expense   70,000     40,000  
 





  Net income before taxes $

 190,000

  $

276,000

 
 












 

     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. Omit the "%" sign in your response.)

 

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