E14-16A (similar to) Question Help Prepare a comparative common-size income stat

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E14-16A (similar to) Question Help Prepare a comparative common-size income statement for Spellbound Corporation. To an investor, how does 2017 compare with 2016? Explain your reasoning E (Click the icon to view the comparative income statement) Data Table Start by calculating the percentages. (Round the percentages to two decimal places, X.Xx.) Spellbound Corporation Comparative Common-Size Income Statement For the Years Ended December 31. 2017 and 2016 Spellbound Corporation Income Statement For the Years Ended December 31, 2017 and 2016 2017 2016 100.00 % Sales revenues Less: Cost of goods sold Gross profit Less: Operating expenses 100.00 % (amounts in thousands) 2017 2016 Sales revenues Less: Cost of goods sold Gross profit Less: Operating expenses Operating income Less: Interest expense Income before income taxes Less: Income tax expense Net income S 567,276 S492,550 248,000 $ 300,471 S244,550 140,250 $ 151,721 S 104,300 4,090 $142,701 S100,210 18,422 $ 117,683 S 81,788 266,805 rating income 148,750 Less: Interest expense Income before income taxes Less: Income tax expense Net income 9,020 25,018 PrintDone

Explanation / Answer

Spellbound corporation

Comparative - Common size income statement

For the year enden december 31, 2017 and 2016

Particulars 2017 2016 Sales revenue 100 100 Less: cost of goods sold 47 50 Gross profit 53 50 Less: operating expenses 26 28 Operating income 27 21 Less: Interest expenses 2 1 Income before income tax 25 20 Less:Income tax expense 4 4 Net income 21 17

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