Express the Following Income Statement Information in Common-Size Percentages (Round $\begin{array}{ll|l|l} & & 2018 & 2017 \\\hline \text { Sales } & 103 & \$ 1,200,000 & \$ 1,000,000\end{array}$

question 145

Essay

Express the following income statement information in common-size percentages (round to nearest whole percent). Comment on the results.
Haans Corp.
Comparative Income Statements
For Years Ended December 31, 2018 and 2017
$\begin{array}{ll|l|l} & & 2018 & 2017 \\\hline \text { Sales } & 103 & \$ 1,200,000 & \$ 1,000,000\end{array}$
$$\begin{array} { | l | c | c | } \hline \text { Sales } & \$ 1,200,000 & \$ 1,000,000 \\\hline \text { Cost of goods sold } & 804,000 & 6 5 0 , 0 0 0\\\hline \text { Grost profit } & \$ 396,000 & \$ 350,000 \\\hline \text { Selling expentes } & 132,000 & 120,000 \\\hline \text { Adrinistrative expenses } & 180,000 & 150,000 \\\hline \text { Net income } & \$ 84,000 & \$ 80,000 \\\hline\end{array}$$

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Definitions:

Supplies

Items used in the operation of a business that are consumed or are not permanent, such as stationery, cleaning products, and office supplies.

Limited Liability Company (LLC)

A company framework that merges the tax responsibilities of a partnership or sole proprietorship with the corporation's benefit of limited liability.

Tax Advantages

Fiscal benefits granted to individuals or businesses, often in the form of deductions, credits, or exemptions, to encourage certain activities or investments.

Paid Wages

Refer to the sum of money paid to employees as compensation for their labor, including salaries, hourly wages, and commissions.