Express the following comparative income statements in commo

Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.) GOMEZ CORPORATION Income Statements For Years Ended December 31, 2017 and 2016 2017 2016 Sales Cost of goods sold Gross profi Operating expenses Net income $ 770,000 565.400 204,600 130,400 $ 74.200 S 690,000 295,400 394,600 280,400 114,200 Has the company\'s situation improved in the most recent year?

Solution

2017 2016 $ % $ % Sales 770,000 100.0 690,000 100.0 Cost Of Goods Sold 565,400 73.4 295,400 42.8 Gross Profit 204,600 26.6 394,600 57.2 Operating Expenses 130,400 16.9 280,400 40.6 Net Income 74,200 9.6 114,200 16.6 No, the company\'s situation has not improved in recent year, In cmparision to 2016 our COGS to Sales has increased which is Bad for business but the Company has improved itself in terms of Operating expenses to Sales percentage. Company Net income rate to sales has decreased which is not good for business. So the company position has not improved in recent year, It has only Decreased.