Exercise 144 Part Level Submission The comparative condensed

Exercise 14-4 (Part Level Submission) The comparative condensed income statements of Emley Corporation are shown below EMLEY CORPORATION Comparative Condensed Income Statements For the Years Ended December 31 Net sales Cost of goods sold Gross profit Operating expenses Net income 2017 $686,400 502,320 184,080 130,000 $54,080 2016 $624,000 435,800 188,200 124,800 $ 63,400

Solution

Condensed Income Statements For the Years Ended December 31 2017 2016 Amount Percent Amount Percent Net sales 686400 100.0% 624000 100.0% Cost of goods sold 502320 73.2% 435800 69.8% Gross profit 184080 26.8% 188200 30.2% Operating expenses 130000 18.9% 124800 20.0% Net income 54080 7.9% 63400 10.2%