The Following Information Was Taken from the Financial Statements of Bjorg

question 192

Essay

The following information was taken from the financial statements of Bjorg Company: $\begin{array}{lrr}& \underline{2014}& \underline{2013}\\ \text { Gross profit on sales } &\$600,000&\$680,000\\ \text { Income before income taxes } &230,000&221,000\\ \text { Net income } &180,000&153,000\\ \text { Net income as a percentage of net sales } &10\%&9\%\\\end{array}$


Instructions
(a) Compute the net sales for each year.
(b) Compute the cost of goods sold in dollars and as a percentage of net sales for each year.
(c) Compute operating expenses in dollars and as a percentage of net sales for each year. (Income taxes are not operating expenses).

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Definitions:

Private Interest

Individual or small group interests that are personal rather than public or communal.

Bribery

The practice of offering, giving, receiving, or soliciting something of value as a means of influencing the actions of an individual holding a public or legal duty.

Bribe

An illegal payment or gift given with the intent to influence the actions or decisions of the recipient, often in a way that is unethical or corrupt.

Jurors

Members of a jury, who are selected to examine the evidence in a court case and make a decision or find a verdict.