Analyze the Common Size Income Statements Below for 3T Company

question 15

Essay

Analyze the common size income statements below for 3T Company:
$\begin{array}{lcc}&2015&2014\\\text { Net sales } & 100 \% & 100 \% \\\text { COGS } & 89 & 87\\\text { Gross margin }&11\%&13\%\\\text { Selling, general and administrative }&7&9\\\text { Restructuring, asset impairments and other charges }&0&9\\\text { Income/(loss) from operations }&4\%&(5)\%\\\text { Interest expense }&(1)&(2)\\\text { Income/(loss) before taxes }&3\%&(7\%)\\\text { Provision for/(benefit from) income taxes }&1&0\\\text { Income/(loss) after taxes }&2\%&(7\%)\\\text { Discontinued operations, net }&6&1\\\text { Net income (loss) }&8\%&(6)\%\end{array}$

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Definitions:

Organizational Meeting

The initial meeting held by the incorporators or directors of a new corporation to complete the formation of the corporation and to establish its internal affairs.

Incorporation Process

The series of steps required to legally create a corporation, including the filing of articles of incorporation with the relevant state authority and compliance with regulatory requirements.

Charter Issued

The granting of legal authorization or a set of rights and privileges from a government or authority to create and operate an organization.

Incorporator

An individual or entity that establishes and files the legal documentation required to form and register a corporation.