Income statements for Mariners Corp. for the past two years are as follows: (amo
ID: 2469400 • Letter: I
Question
Income statements for Mariners Corp. for the past two years are as follows: (amounts in thousands of dollars) 2014 2013 Sales revenue $60,000 $53,000 Cost of goods sold 42,480 31,482 Gross profit $17,520 $21,518 Selling and administrative expense 8,760 4,876 Operating income $8,760 $16,642 Interest expense 1,860 1,860 Income before tax $6,900 $14,782 Income tax expense 2,000 4,200 Net income $4,900 $10,582
Using the format in Example 13-5, prepare common-size comparative income statements for the two years for Mariners Corp. Round percentages to one decimal point. Mariners Corp. Common-Size Comparative Income Statements For The Years Ended December 31, 2014 And 2013 (In Thousands of Dollars) 2014 Dollars 2014 Percent 2013 Dollars 2013 Percent Sales revenue $ 60,000 100 % $ 53,000 100 %
Cost of goods sold 42,480 31,482
Gross profit $ 17,520 % $ 21,518 %
Selling and administrative expense 8,760 4,876
Operating income $ 8,760 % $ 16,642 %
Interest expense 1,860 1,860
Income before tax $ 6,900 % $ 14,782 %
Income tax expense 2,000 4,200
Net income $ 4,900 % $ 10,582
What are the percentages for 2014 and 2013?
Using the format in Example 13-2, prepare comparative income statements for Mariners Corp., including columns for the dollars and for the percentage increase or decrease in each item on the statement. Round all percentages to the nearest whole percent. If an answer is zero, enter "0"
Mariners Corp.
Comparative Statements of Income
For The Years Ended December 31, 2014 And 2013 (In Thousands of Dollars)
December 31, 2014
December 31, 2013
Increase/Decrease Dollars
Increase/Decrease (Percent)
$
$
$
%
Gross profit
$
$
$
$
$
$
$
$
$
Net income
$
$
$
Mariners Corp.
Comparative Statements of Income
For The Years Ended December 31, 2014 And 2013 (In Thousands of Dollars)
December 31, 2014
December 31, 2013
Increase/Decrease Dollars
Increase/Decrease (Percent)
$
$
$
%
Gross profit
$
$
$
$
$
$
$
$
$
Net income
$
$
$
Explanation / Answer
Mariners Corp.
Comparative Statements of Income
For The Years Ended December 31, 2014 And 2013 (In Thousands of Dollars)
December 31, 2014 December 31, 2013 Increase / Decrease Dollars Increase / Decrease Percent Sales $60000 100% $53000 100% $7000 0 Cost of Goods Sold 42480 71 $31482 59 $10998 12 Gross Profit 17520 29 21518 41 (3998) 12 Selling and Administrative Expenses 8760 14 4876 9 3884 5 Operating Inocme 8760 15 16642 31 (7882) 16 Interest Expenses 1860 4 1860 3 0 1 Income before tax 6900 11 14782 28 (7882) 17 Income tax expense 2000 3 4200 8 ($2200) 5 Net Profit $4900 8 $10582 20 ($5682) 12