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

question 121

Essay

Express the following income statement information in common-size percentages (round to nearest whole percent). Comment on the results.
Haans Corp.
Comparative Income Statements
For the years ended December 31
$\begin{array}{|l|r|r|}\hline & \text { Year 2 } & \text { Year 1 } \\\hline \text { Sales } & \$ 1,200,000 & \$ 1,000,000 \\\hline \text { Cost of goods sold } & 804,000 & 650,000 \\\hline \text { Gross profit } & \$ 396,000 \$ & 350,000 \\\hline \text { Selling expenses } & 132,000 & 120,000 \\\hline \text { Administrative expenses } & 180,000 & 150,000 \\\hline \text { Net income } & 4,000 & 80,000 \\\hline\end{array}$

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Definitions:

Environmental Effects

Impacts on the natural world due to human activity or natural processes, often evaluated in terms of changes to ecosystems, climate, and biodiversity.

Tradable Environmental Permits

Market-based instruments allowing for the buying and selling of pollution allowances, aiming to reduce harmful emissions cost-effectively.

Disadvantages

The negative or less favorable aspects of something that may hinder progress, success, or satisfaction in certain contexts.

Production

Production is the process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (output).