4. The following common size income statement Corporation for the two years ended December 2019, and 2018 are available for Gaea 2019 2018 Sales 100% 100% Cost of sales 55% 70% Gross profit on sales 45% 30% Operating (including income tax expense) Net income expenses 20% 18% 25% 12% The trend percentages for sales are as follows: 2017 130% 2016 100% What should be the trend percentage for gross profit on sales for 2019 A. 58.5% В. 130% С. 150% D. 195% Answer:

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 99.3C
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4. The following common size income statement are available for Gaea
Corporation for the two years ended December 2019, and 2018
2019
2018
Sales
100%
100%
Cost of sales
55%
70%
Gross profit on sales
45%
30%
Operating
(including income tax
expense)
expenses
20%
18%
25%
12%
Net income
The trend percentages for sales are as follows:
2017
130%
100%
2016
What should be the trend percentage for gross profit on sales for 2019
A. 58.5%
В. 130%
С. 150%
D. 195%
Answer:
Transcribed Image Text:4. The following common size income statement are available for Gaea Corporation for the two years ended December 2019, and 2018 2019 2018 Sales 100% 100% Cost of sales 55% 70% Gross profit on sales 45% 30% Operating (including income tax expense) expenses 20% 18% 25% 12% Net income The trend percentages for sales are as follows: 2017 130% 100% 2016 What should be the trend percentage for gross profit on sales for 2019 A. 58.5% В. 130% С. 150% D. 195% Answer:
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