Express the Following Income Statement Information in Common-Size Percents (Round

question 34

Essay

Express the following income statement information in common-size percents (round to nearest whole percent).Comment on the results.
$\begin{array}{c}\text { THORSTEN CORP. } \\\text {Comparative Income Statement } \\\text {For Years Ended December 31, 2014 and 2013 } \\\begin{array}{|l|r|r|}\hline & \underline { 2014 } & \underline { 2013 } \\\hline \text { Sales } & \$ 1,200,000 & \$ 1,000,000 \\\hline \text { Cost of goods sold } & \underline{804,000} & \underline{650,000} \\\hline \text { Gross profit } & \$ 396,000 & \$ 350,000 \\\hline \text { Selling expenses } & 132,000 & 120,000 \\\hline \text { Administrative expenses } & 180,000 & 150,000 \\\hline \text { Net income } & \underline {\$ 84,000} & \underline {\$ 80,000} \\\hline\end{array}\end{array}$

---

Definitions:

Scoliosis

A medical condition in which a person's spine has a sideways curve, often shaped like an "S" or "C."

Vision Screening

A primary method to identify individuals with visual impairment or eye conditions that could lead to vision loss.

Cholesterol

A type of fat found in the blood that's vital for building cells but can lead to heart disease when levels are too high.

Bureaucratic Management

A formal organizational structure with a clear hierarchy, division of labor, and a set of rules and procedures aimed at achieving efficiency.