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Patrick Corporation has the following comparative income statements. Which of th

ID: 2488654 • Letter: P

Question

Patrick Corporation has the following comparative income statements. Which of the following statements is false with regard to this comparative data?

$44,000        

$70,000          

C)  The common-size gross profit percent for 2010 equals (2.38)%

E)  Statements B and D are false

D)  The common-size cost of goods sold for 2009 equals 53.16%

B)  The common-size net income percent for 2009 equals 26.02%

A)  The common-size sales percent for 2010 equals 100%

Patrick Corporation has the following comparative income statements. Which of the following statements is false with regard to this comparative data?

Explanation / Answer

The following statements are false:

C)  The common-size gross profit percent for 2010 equals (2.38)%

E)  Statements B and D are false

Explanation:

The common size gross profit percent for 2010 is 33.98%

Statement B and D both are correct.

Common Size Income statement Years 2010 2009 Particulars Amount($) % Amount($) % Sales 362000 100.00% 269000 100.00% Cost of goods sold 239000 66.02% 143000 53.16% Gross profit 123000 33.98% 126000 46.84% Operating Expenses 79000 21.82% 56000 20.82% Net profit 44000 12.15% 70000 26.02%