Using the Income Statement Below,develop a Common-Size Statement by Filling

question 126

Essay

Using the income statement below,develop a common-size statement by filling in the blanks provided.Show your work.Round to one decimal place.
$\begin{array}{lr}&20xx&20xx\\\text { Net sales } & \$ 200,000&\_\_\_ \\\text { Cost of goods sold } & 116,000&\_\_\_ \\\text { Gross margin } & \$ 84,000 &\_\_\_ \\\text { Operating expenses } & 46,000&\_\_\_ \\\text { Income before income taxes } & \$ 38,000&\_\_\_ \\\text { Income taxes expense } & 15,200&\_\_\_ \\\text { Net income }&\$22,800&\_\_\_ \\\end{array}$

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Definitions:

Upper Echelon Theory

A theory suggesting that an organization's outcomes are influenced by the personal backgrounds and characteristics of its top executives.

Organizational Characteristics

Traits or attributes that define the nature of an organization, including its size, structure, processes, culture, and goals.

Background Characteristics

Fundamental attributes or experiences of individuals, such as age, education, or cultural background, that contribute to their identity.

Social Loafing

The phenomenon where individuals in a group contribute less effort to a task than they would when working alone.