Accounting exercises

hho9e_e15_16_eip_stud-1.xlsx

E15-16

Accounting, 9e
E15-16	Preparing common-size income statements
LO 3 [10-15 minutes]
		Students please fill-in areas that are shaded
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Consider the data presented in Exercise 15-13.
Data from Exercise 15-13 presented here for your convenience.
	MARINER DESIGNS, INC.
	Comparative Income Statement
	Year Ended December 31, 2012 and 2011
				2012	2011
	Net sales revenue			$ 431,000	$ 372,350
	Expenses:
	Cost of goods sold			$ 200,000	$ 187,550
	Selling and general expenses			99,000	91,050
	Other expense			8,350	6,850
	Total expense			$ 307,350	$ 285,450
	Net income			$ 123,650	$ 86,900
Requirements
1.	Prepare a comparative common-size income statement for Mariner Designs, Inc.,
	using the 2012 and 2011 data. Round percentages to one-tenth percent (three
	decimal places).
2.	To an investor, how does 2012 compare with 2011? Explain your reasoning.
Test Your Knowledge
E15-16
Req. 1
	MARINER DESIGNS, INC.
	Comparative Income Statement
	Year Ended December 31, 2012 and 2011
			2012	2011
	Net sales revenue		100.0%	100.0%
	Expenses:
	Cost of goods sold		46.4%
	Selling and general expense
	Other expense
	Total expenses
	Net income		100.0%	100.0%
Req. 2

good student April