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

question 55

Essay

Express the following income statement information in common-size percentages (round to nearest whole percent).Comment on the results.
$\begin{array}{c} \text {Haans Corp.}\\ \text {Comparative Income Statements}\\ \text {For Years Ended December 31, 2018 and 2017}\\\begin{array}{|l|c|c|}\hline&2018&2017\\\hline \text { Sales } & \$1 , 200,000 & \$1 , 000,000 \\\hline \text { Cost of goods sold } &804,000 & 650,000 \\\hline \text { Gross profit } & \$ 396,000 & \$ 350,000 \\\hline \text { Selling expenses } & 132,000 & 120,000 \\\hline \text { Administrative expenses } & 180,000 & 150,000 \\\hline\text { Net income }&\$84,000&\$80,000\\\hline\end{array}\end{array}$

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Definitions:

Evidence

Information or facts that are used to support a conclusion, hypothesis, or claim.

Beliefs

Cognitive attitudes towards the truth or falsity of propositions, influencing perceptions and behavior.

Mental Set

A framework for thinking about a problem based on prior experience and perception, which can sometimes hinder the ability to see alternative solutions.

Problem-Solving Strategy

A method or process outlined to deal with a problem or overcome a challenge effectively.