Financial and Managerial Accounting |(7th Edition) ]Bookmark Show all steps: ON

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Financial and Managerial Accounting |(7th Edition) ]Bookmark Show all steps: ON Chapter 13, Problem 5E Problem Common-size and trend percents for Rustynail Company's sales, cost of goods sold, and expenses follow. Determine whether net income increased, decreased, or remained unchanged in this three-year period. Common Size Percents Trend Percents 2017 2016 2015 2017 2016 2015 1000% 1000% 1000% 1054% 1042% 1000% Texpenses..1 106 1021 10 Step-by-step solution Vie There is no solution to this problem yet Get help from a Chegg subject expert ASK AN EXPERT

Explanation / Answer

For Examble Sales we can take as $ 100,000   2017 2016 2015 Sales                        105,400 105.4%                             104,200 104.2%                       100,000 100% Cost of Goods Sold                           66,842 113.1%                               64,478 109.1%                         59,100 100% Total Expenses                           16,127 106.8%                               15,417 102.1%                         15,100 100% Net Income                           22,431 21.3%                               24,305 23.3%                         25,800 100% 2016 Sales = $100,000 x 104.2% = $104,200 2016 Cost of goods sold = $59,100 x 109.1% = $64,478 2016 Total expenses = $15,100 x 102.1% = $15,417 2017 Sales = $100,000 x 105.4% = $105,400 2017 Cost of goods sold = $59,100 x 113.1% = $66,842 2017 Total expenses = $15,100 x 106.8% = $16,127

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