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Question
Express the following income statement information in common-size percents (round to nearest whole percent). Comment on the results.
| THORSTEN CORP. Comparative Income Statement For Years Ended December 31, 2014 and 2013 | ||
| 2014 | 2013 | |
| Sales | $1,200,000 | $1,000,000 |
| Cost of goods sold | 804,000 | 650,000 |
| Gross profit | $ 396,000 | $ 350,000 |
| Selling expenses | 132,000 | 120,000 |
| Administrative expenses | 180,000 | 150,000 |
| Net income | $ 84,000 | $ 80,000 |
Answer
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