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Montana Company Reported the Following Operating Results for 2013 and 2014

question 53

Essay

Montana Company reported the following operating results for 2013 and 2014: $Montana Company reported the following operating results for 2013 and 2014: \begin{array}{|l|r|c|} \hline 2014 &{\text { Amount }} & \% \text { of Sales } \\ \hline \text { Sales } & \$ 960,000 & \\ \hline \text { Cost of goods sold } & 635,000 & \\\hline \text { Gross margin } & 325,000 \\ \hline \text { Operating expenses } & 275,000 \\\hline \text { Income before taxes } & 50,000 \\ \hline \text { Income taxes } & 15,000 \\ \hline \text { Net income } & \$ \quad 35,000 \\ \hline \end{array} Required: Express each income statement component for each year as a percentage of sales. Round your answer to one decimal place (i.e. 22.5%)$
$\begin{array}{|l|r|c|}\hline 2014 &{\text { Amount }} & \% \text { of Sales } \\\hline \text { Sales } & \$ 960,000 & \\\hline \text { Cost of goods sold } & 635,000 & \\\hline \text { Gross margin } & 325,000 \\\hline \text { Operating expenses } & 275,000 \\\hline \text { Income before taxes } & 50,000 \\\hline \text { Income taxes } & 15,000 \\\hline \text { Net income } & \$ \quad 35,000 \\\hline\end{array}$
Required:
Express each income statement component for each year as a percentage of sales. Round your answer to one decimal place (i.e. 22.5%)

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