Express the Following Income Statement Information in Common-Size Percents (Round

question 112

Essay

Express the following income statement information in common-size percents (round to nearest whole percent).Comment on the results.
$\begin{array}{c}\text {THORSTEN CORP}\\\text {Comparative Income Statement }\\\text {For Years Ended December 31, 2014 and 2013}\\\begin{array}{|l|r|r|}\hline&2014&2013\\\hline\text { Sales } & \$ 1,200,000 & \$ 1,000,000 \\\hline \text { Cost of goods sold } & \underline{804,000} & \underline{650,000} \\\hline \text { Gross profit } & \$ 396,000 & \$ 350,000 \\\hline \text { Selling expenses } & 132,000 & 120,000 \\\hline \text { Administrative expenses } & 180,000 & 150,000 \\\hline \text { Net income } & \$ 84,000 & \$ 80,000 \\\hline\end{array}\end{array}$

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Definitions:

Individualist Cultures

Societies where personal achievements and independence are emphasized over group goals.

Collectivist Cultures

Refers to societies that prioritize the group over individual interests, emphasizing family ties, social cohesion, and interdependence.

Experience Dissonance

A psychological phenomenon where there is a conflict between one's beliefs and behaviors, often causing discomfort that leads to an attempt to reduce the inconsistency.

Induced Compliance

A psychological phenomenon where individuals change their attitudes or beliefs to align with their externally influenced behaviors, especially in situations causing cognitive dissonance.