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:

Assents

Expressions of approval or agreement.

Obligee

A party who is entitled to receive a benefit or performance from another under the terms of a contract.

Assignee

An individual or entity to whom rights or interests have been transferred by another, especially in contractual or legal contexts.

Obligor's Performance

The execution of duties or fulfillment of obligations by the party (obligor) that is bound by a contractual agreement to provide a service, payment, or benefit to another party.