Using the Following Information Prepare a Common Size Income Statement

question 5

Essay

Using the following information prepare a common size income statement: $$\begin{array} { l r } \text { Net sales } & \$ 9,500 \\\text { Cost of goods sold } & 5,900 \\\text { Gross profit } & \$ 3,600 \\\text { General and administrative expenses } & 1,250 \\\text { Selling expenses } & 920 \\\text { Operating profit } & \$ 1,430 \\\text { Income tax expense } & 460 \\\text { Net profit } & \$ 970\end{array}$$

---

Definitions:

Decision Process

The series of steps a consumer goes through before, during, and after making a purchase.

Product

Anything offered to the market for use or consumption that might satisfy a want or need, including physical items, services, experiences, events, persons, places, properties, organizations, information, and ideas.

Buyer

An individual or organization that makes a purchase or is a potential customer for products or services.

Need Arousal

The process of stimulating interest or desire in a customer for a product or service, often through marketing or sales strategies.