Prepare a Comparative Common-Size Income Statement for Clarion,Inc Operating Expenses

question 129

Essay

Prepare a comparative common-size income statement for Clarion,Inc.for 2019 and 2018 data.(Round percentages to one decimal place.)
Clarion, Inc.
Compartive Inrome Statement
Years Ended December 31, 2019 and 201B $$\begin{array} { l l l } & \underline { 2019 } & \underline { 2018 } \\\text { Net Sales }& \$ 6,355 & \$ 4,920 \\\text { Cost of Coods Sold } & \underline { 3,370 } & \underline { 2,200} \\\text { Grox Profit } & 2,985 & 2,720\end{array}$$
Operating Expenses:
$$\begin{array} { l l l } \text { Selling Expenses } & 675 & 580\\\text { Administrative Expenses } & \underline { 410 } & \underline { 425 } \\\text { Total Operating Expenses } & \underline { 1,085 } & \underline { 1,005 } \\\text { Operating Income } & 1,900 & 1,715\end{array}$$ Other Income and (Expenses):
$\begin{array}{lll}\text { Interest Expense } & \underline{400)} & \underline{(695)} \\\text { Total Other Income and (Expenses) } & \underline{(400)} & \underline{(695)} \\\text { Income Before Income Taxes } & 1,500 & 1,020 \\\text { Income Tax Expense } & \underline{230} & \underline{210} \\\text { Net Income } & \$ 1,270 & \$ 810\end{array}$

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Definitions:

Writing Checks

The process of completing and signing a check as a means of making a payment from a bank account.

Additional Checks

Extra verification processes or controls implemented to ensure accuracy, compliance, or security.

Deposit

Money placed in a bank account or to secure a purchase until the transaction is completed.

Adjusted Cash Balance

The cash balance reported in a company's financial statements after adjustments have been made for checks written, deposits in transit, and other discrepancies.