The following income statements were drawn from the annual reports of Toner Sale

Question

The following income statements were drawn from the annual reports of Toner Sales Company 2018* 2019* Net sales Cost of goods sold Gross margin Less: Operating expense 426,200 521,200 (264 244)(271 0241 161,956 250,176 Selling and administrative expenses (51,144) (62,544)- Net Incone $ 110, 812187,632 All dollar amounts are reported in thousands. president's message in the company's annual report stated that the company had implemented a strategy to increase market share by spending more on advertising. The president indicated that prices held steady and sales grew as expected. Prepare common size income statements and make appropriate references to the differences between 2018 and 2019. (Round all intermediate lculations and final answers for percentage values to 1 decimal place. Enter answers in millions, not in dollar.) TONER SALES COMPANY Income Statement For the Years Ended December 31, 2018 and 2019 2018 2019

Explanation / Answer

2018 % 2019 % Net Sales                      426,200 100 521200 100 Cost of goods sold                      264,244               62 271024               52 Gross Margin                      161,956               38                     250,176               48 Less Operating Income Selling and administrative expenses                        51,144               12 62544               12 Net Income                      110,812               26                     187,632               36

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