A Company Reports the Following Comparative Income Statements What Are the Costs of Goods Sold in Common-Size Percents

question 49

Essay

A company reports the following comparative income statements:
$\begin{array}{|l|r|r|} \hline& 2014 & 2013 \\\hline \text { Net sales } & \$ 736,000 & \$ 840,000 \\\hline \text { Cost of goods sold } & 518,880 & 571,200 \\\hline \text { Gross profit } & \$ 217,120 & \$ 268,800 \\\hline \text { Operating expenses } & 104,800 & 130,000 \\\hline \text { Net income } & \$ 112,320 & \$ 138,800 \\\hline\end{array}$ What are the costs of goods sold in common-size percents for 2013 and 2014, respectively?

Understand the concept of a professional corporation and how it differs from other business entities in terms of management and liability.

Identify the characteristics of a joint venture and how they compare to partnerships.

Grasp the principles of co-ownership in business entities and how it relates to management and profit sharing.

Conceptualize the life span of different business entities and the factors affecting their continuity.

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Definitions:

Philosophical Idea

A concept or thought derived from philosophical inquiry, relating to fundamental questions about life, existence, knowledge, values, reason, and reality.

Existential

Relating to existentialism, a philosophical theory focusing on individual freedom, choice, and existence.

Evaluating

The process of determining the significance, worth, or condition of something, typically following an analysis of its attributes.

Conditions of Worth

Standards and expectations imposed by others that one feels they must meet to be valued and accepted.