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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		4,990,900		3,515,000

Gross margin		2,349,100		1,990,000

Selling and administrative expenses:
Selling expenses		1,475,000		1,072,500
Administrative expenses		705,000		610,500

Total selling and administrative expenses		2,180,000		1,683,000

Net operating income		169,100		307,000
Interest expense		104,000		85,000

Net income before taxes	$	65,100	$	222,000

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	%	%

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9950411

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