Analyze the Common Size Income Statements Below for Coast Company

question 33

Essay

Analyze the common size income statements below for Coast Company:
$\begin{array}{lrr}\text { (in percent) }&2015&2014\\\hline\text { Net sales } & 100 & 100 \\\text { COGS } & 62 & 65\\\text { Gross margin }&38&35\\\text { Research and development }&9&5\\\text { Selling, general and administrative }&11&17\\\text { Restructuring, asset impairments and other charges }&1&8\\\text { Income/(loss) from operations }&17&5\\\text { Interest expense }&(3)&(1)\\\text { Income/(loss) before taxes }&14&4\\\text { Provision for/(benefit from) income taxes }&4&1\\\text { Net income/(loss) }&10&3\end{array}$

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Definitions:

Viscous

A physical property describing a fluid that is thick and sticky, offering resistance to flow, such as honey or glycerin.

Nephron

The functional unit of the kidney, responsible for the filtration and excretion of waste products from the blood and the regulation of electrolyte and fluid balance.

Edema

A medical condition characterized by the accumulation of excess fluid in the body's tissues, causing swelling.

Albumin

A protein commonly found in blood plasma that helps maintain blood volume and pressure by regulating osmotic forces.