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?

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Definitions:

Western Capitalism

A socio-economic system characterized by private or corporate ownership of capital goods, investments determined by private decision, and prices, production, and the distribution of goods determined primarily by competition in a free market.

Natural Resources

Materials and components found in nature that can be used for economic gain or necessary for life, such as water, timber, and minerals.

Powerful Nations

Countries that possess significant political, economic, and military influence on a global scale.

Stratification

The hierarchical arrangement of individuals in a society based on factors like wealth, income, race, education, and power.