Prepare a Comparative Common-Size Income Statement for Marion,Inc

question 158

Essay

Prepare a comparative common-size income statement for Marion,Inc.for 2017 and 2016 data.(Round percentages to one decimal place. )
$\begin{array}{c}\text { Marion, Inc.}\\\text { Comparative Income Statement}\\\text { Years Ended December 31, 2017 and 2016}\\\\\begin{array}{lrr}&2017&2016\\\text { Net Sales } & \$ 6,355 & \$ 4,920 \\\text { Cost of Goods Sold } & \underline{3,370} & \underline{2,200} \\\text { Gross Profit } & 2,985 & 2,720\\\text { Operating Expenses: } & & \\\text { Selling Expenses } & 675 & 580 \\\text { Administrative Expenses } & \underline{410} & \underline{425} \\\text { Total Operating Expenses } & \underline{1,085} & \underline{1,005} \\\text { Operating Income } & 1,900 & 1,715 \\\text { Other Revenues and (Expenses): } & &\\\text { Interest Revenue } & 0 & 0 \\\text { Interest Expense } & \underline{(400)} & \underline{(695)} \\\text { Total Other Revenues and (Expenses) } & \underline{(400)} & \underline{(695)} \\\text { Income Before Income Taxes } & 1,500 & 1,020 \\\text { Income Tax Expense } & \underline{\underline{230}} & \underline{\underline{210}} \\\text { Net Income } & \underline{\$ 1,270} & \underline{\$ 810}\end{array}\end{array}$

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Definitions:

Accumulated Depreciation

The total depreciation for a fixed asset that has been charged to expense since the asset was acquired and put into use.

Salvage Value

The estimated residual value of an asset at the end of its useful life, often used in calculating depreciation expense.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded over time for tangible assets, reducing their carrying value on the balance sheet.

Salvage Value

The forecasted sell-on value of an asset at the conclusion of its operational period.