Using the following information prepare a common size income ...

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Using the following information prepare a common size income statement:
 
   Net sales 9,500
   Cost of goods sold 5,900
   Gross profit 3,600
   General and administrative expenses 1,250
   Selling expenses 920
   Operating profit 1
 
  ,430
   Income tax expense 460
   Net profit  970
 
 
 What will be an ideal response?

Question 2

A check written for 68.30 in payment of an account was recorded on the books as 86.30 . On a bank reconciliation, this will appear as a(n)
 a. addition to the bank balance for 18.
   b. deduction from the bank balance for 18.
   c. addition to the ledger balance for 18.
   d. deduction from the ledger balance for 18.
   e. addition to the bank balance of 36.

[owenfalvey]

Answer to Question 1

Net sales 100.0
Cost of goods sold 62.1
Gross profit 37.9
General and administrative expenses 13.2
Selling expenses 9.7
Operating profit 15.0
Income tax expense 4.8
Net profit 10.2

Answer to Question 2

c

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Gracias!

[mcarey591]

Excellent