MEGA, INC. Comparative Income Statement For the Years Ended December 31, 2018, a
ID: 2391144 • Letter: M
Question
MEGA, INC.
Comparative Income Statement
For the Years Ended December 31, 2018, and 2017
2018 2017
Net Sales $360,000 $290,000
Cost of goods sold 274,000176,000
Gross Margin $136,000 $114,000
Operating expenses 80,00060,000
Operating income $ 56,000 $ 54,000
Interest expense 14,000 10,000
Income before income taxes $ 42,000 $ 44,000
Income taxes expense 14,000 16,000
Net Income $ 28,000 $ 28,000
Earnings per share $ 2.80 $ 2.80
MEGA, INC.
Comparative Balance Sheet
December 31, 2018 and 2017
2018 2017
Assets
Gross assets $ 48,000 $ 40,000
Property, plant, and equipment (net) 260,000 200,000
Total assets $308,000$240,000
Liabilities and Stockholders’ Equity
Current Liabilities $ 36,000 $ 44,000
Long-term liabilities 180,000 120,000
Stockholders’ equity 92,000 76,000
Total liabilities and stockholders’ equity $308,000 $240,000
1) Find the COST OF GOODS SOLD - $ CHANGE, % CHANGE
Explanation / Answer
MEGA, INC.
Comparative Income Statement
For the Years Ended December 31, 2018, and 2017
Amount ($)
Increase / (Decrease)
December 31, 2018
December 31, 2017
Amount
Percentage
Cost of goods sold
274,000
176,000
98,000
55.7%
Percentage change in increase of Cost of goods sold = [ 98,000 / 176,000 ] x 100 = 55.7%
MEGA, INC.
Comparative Income Statement
For the Years Ended December 31, 2018, and 2017
Amount ($)
Increase / (Decrease)
December 31, 2018
December 31, 2017
Amount
Percentage
Cost of goods sold
274,000
176,000
98,000
55.7%
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