Question

Cas e Income Statements and conta is Income statements for Manners Corp. for the past two years we as follows: (amounts in the sands of dollars) 2017 2016 $59.080 49,610 42,440 29.920 $12,520 $19,690 4,990 $3,600 $14.700 1,980 1,980 16,660 $12,720 4,030 $5,120 8,690 Sales Cost of goods sold Gross pro Selling and Operating come Interest expense Income before tax Income tax expense Net income expense Required 1. Using the format in Example 13 prepare con comparative income statement decimal Common Cowen States For The Years Ended December 31, 2017 And 2016 (In Thomando bar) 2017 Dollars 2017 Percent 2016 Dollars 2016 Percent Died My W ore Che Worker (Previous New

Answer 1

Answer is given below

Mariners Corp. Common size Comparative Income Statement For the years ended December 31, 2017 and 2016 ( in thousands of dollars) 2017 dollar 2017 present 2016 dollar 2016 present Sales $59,960 100.0% $49,610 100.0% Cost of Goods sold $42,440 70.8% $29,920 60.3% Gross profit $17,520 29.2% $19,690 39.7% Selling and administrative expense $8,880 14.8% $4,9901 10.1% Operating Income $8,640 14.4% $14,700 Interest expense $1,980 3.3% $1,980 4.0% Income before tax $6,660 11.1% $12,720 25.6% Income tax expense $1,540 2.6% $4,030 8.1% Net Income $5,120 8.5% $8,690 17.5% 29.6% 2 Answers is option a) Mariners Corp. Comparative Statement of Income For the years ended December 31, 2017 and 2016 Increase Increase (Decrease) (Decrease) December December 31, 2017 31, 2016 Dollars Sales $59,960 $49,610 $10,350 20.9% Cost of Goods sold $42,440 $29,9201 $12,520 41.8% Gross profit $17,520 $19,690 -$2,170 -11.0% Selling and administrative expense $8,880 $4,990 $3,890 78.0% Operating Income $8,640 $14,700 -$6,060 -41.2% Interest expense $1,980 $1,980 0.0% Income before tax $6,660 $12,720 $6,060 -47.6% Income tax expense $1,540 $4,030 -$2,490 -61.8% Net Income $5,120 $8,690 $3,570 -41.1% 4 Answers are a) and b)