Question

Perez Corporation reported the following operating results for two consecutive years: Required a. Compute the percentage changes in Perez Corporation's income statement components between the two years. (Negative amounts should be indicated by a minus sign. Round your answers to 1 decimal place. (i.e., .234 should be entered as 23.4).) X Answer is complete but not entirely correct. PEREZ CORPORATION Income Statements 2018 2017 Percentage Change 29.2 % $1,299,000 $1,005,000 % 798,885 603,000 32.4 X Sales Cost of goods sold Gross margin Operating expenses Income before taxes 500,115 402,000 24.4 51.0 301,500 200,000 198,615 202,000 52,500 Income taxes Net income (loss) 61,400 $ 137,215 (1.1) 17.0 (9.2)® $ 149,500 %

Answer 1

			2018	2017	percentage
Sales			1,299,000	1,005,000	29.3%
Cost of good sold			798,885	603,000	32.5%
Gross margin			500,115	402,000	24.4%
operating expenses			301,500	200,000	50.8%
income before taxes			198,615	202,000	-1.7%
income taxes			61,400	52,500	17.0%
net income(loss)			137,215	149,500	-8.2%