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

question 142

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.
$$\begin{array} { | l r l | } \hline & { \mathbf { 2 0 x \mathbf { x } } } & \mathbf { 2 0 x \mathbf { x } } \\\text { Net sales } & \$ 200,000 & \underline{\quad\quad}\\\text { Cost of goods sold } & 116,000 & \\\text { Gross margin } & \$ 84,000 &\underline{\quad\quad} \\\text { Operating expenses } & 46,000 &\underline{\quad\quad} \\\text { Income before income taxes } & \$ 38,000 & \\\text { Income taxes expense } & 15,200 &\underline{\quad\quad} \\\text { Net income } & \$ 22,800 & \\\hline\end{array}$$

---

Definitions:

Direct Business Loans

These are loans offered directly from a lender to a business without the use of intermediaries. This can provide more straightforward access to capital for businesses.

Green Shoe Provision

An option that allows underwriters to buy and sell additional shares if the demand exceeds expectations during an IPO.

Over-subscription

Occurs when the demand for a stock or other security exceeds the available supply during an initial public offering or other issuance.

Offering Price

The price at which a company's shares are offered to the public for the first time in an Initial Public Offering (IPO) or the price at which any financial security is available for sale.