Using the Following Information Prepare a Common Size Income Statement

Essay

Using the following information prepare a common size income statement: $$\begin{array} { l r } \text { Net sales } & \$ 9,500 \\\text { Cost of goods sold } & 5,900 \\\text { Gross profit } & \$ 3,600 \\\text { General and administrative expenses } & 1,250 \\\text { Selling expenses } & 920 \\\text { Operating profit } & \$ 1,430 \\\text { Income tax expense } & 460 \\\text { Net profit } & \$ 970\end{array}$$