E 14 - 174,00 19.7% 136,00 25.0% Income tax expense 52,000...

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E 14-36  page 704 Common-Size Income Statement Common-size income statement for King Engineering Company King Engineering Company  Income Statement For Year Ended June 30 2009 % 2008 % Sales 885,00 0 100% 545,00 0 100% Cost of Goods sold 570,00 0 64.4% 305,00 0 56.0% Gross profit on sales 315,00 0 35.6% 240,00 0 44.0% Selling and general  expenses 106,00 0 12.0% 84,000 15.4% Operating income 209,00 0 23.6% 156,00 0 28.6% Interest expenses 35,000 4.0% 20,000 3.7% Income before income tax
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Unformatted text preview: 174,00 19.7% 136,00 25.0% Income tax expense 52,000 5.9% 41,000 7.5% Net income 122,00 13.8% 95,000 17.4% 2\ The profitability of 2009 is lower than profitability of 2008 because there is the increasing in cost of goods sold and interest expense in 2009 2009 2008 Cost of goods sold 64.4% 56.0% Interest expenses 4.0% 3.7%...
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