Question

ht Solved: Classif. ACCOUNTING... Accounting, Ch... Do Homework. Syllabus Docu. Mal - Christian ACC141 OM2 Managerial Accounting Homework: Assign 3 - chap 14 - vertical & common Score: 0 of 1 pt 1 of 15 (0 com S14-4 (book/static) Compare Martinez and Rojo by converting their income statements to common size. Martinez Net sales Cost of goods sold Rojo 19,536 $ 10,900 $ 6,660 3,564 Other expense 14.203 4,356 Net income 676 $ 977 Which company cams more net income? Which company's net income is a higher percentage of its net sales? Prepare the common sized financial analysis: (Round percentages to the nearest tenth percent.) Martinez Amount % Net sales Cost of goods sold $ % 10.900 20% $ Rojo Amount 19,536 14,203 4,356 18% Other expenses 6,660 3,564 22% Net Income 14 R $ 676 19% 26 % 17 12 % $ 977 Enter any number in the edit fields and then click Check Answer. part remaining Clear All

Answer 1

Martinez:

Net sales : 10,900/ 30,436 = 35.18℅

Cogs: 6600/10900= 60.55 ℅

Other expenses : 3564/10900 = 32.70%

Net income: 676/ 10900 = 6 . 20%

Rojo:

Net sales : 19,536/ 30,436 = 64.19%

Cogs : 14203/ 19,536 = 72.70%

Other expense: 4356/19536 = 22.30

Net income: 977/19536 = 5%