Presented below are the comparative income statements for Mayling, Inc. for the years 2003 through 2005.
MAYLING, INC.
Income Statements
For the Year Ended
2005 2004 2003
Net sales $5,185,000 $5,066,000 $5,212,000
Cost and expenses
Cost of sales 2,846,000 2,846,000 2,904,000
Selling, general & administrative 1,785,000 1,730,000 1,740,000
Total Expenses 4,631,000 4,576,000 4,644,000
Income before income taxes 554,000 490,000 568,000
Income taxes 125,000 111,000 127,000
Net income $429,000 $379,000 $441,000
Net income per common share $0.86 $.76 $0.88
REQUIRED:
a.) Compute the common-size income statement in the space provided.
MAYLING, INC.
Income Statements
For the Year Ended
2005 2004 2003
Net sales
Cost and expenses
Cost of sales
Selling, general & administrative ________ ________ ________
Total Expenses ________ ________ ________
Income before income taxes
Income taxes ________ ________ ________
Net income
Net income per common share
b.) Answer the following questions:
1.) Has the net income percentage increased or decreased over time?
2.) What components of net income contributed to its increase or decrease?