Sigma Company's single-step income statements for 2014 and 2013 follow.
|
sigma Company Income statements
For the Years Ended April 30, 2014 and 2013
|
| Revenues: |
2014 |
2013 |
|
Net sales
|
$1,051,864
|
$950,528
|
|
Interest income
|
3,600
|
1,700
|
|
Total revenues
|
$1,055,464
|
$952,228
|
|
Costs and expenses: Cost of goods sold
|
$ 469,896
|
$343,700
|
|
Selling expenses
|
323,384
|
301,400
|
|
General and administrative expenses
|
125,732
|
84,172
|
|
Interest expense
|
7,200
|
3,400
|
|
Total costs and expenses
|
$ 926,212
|
$732,672
|
|
Income before income taxes
|
$ 129,252
|
$219,556
|
|
Income tax expense
|
15,400
|
7,200
|
|
Net income
|
$ 113,852
|
$212,356
|
Required:
1. Prepare multistep income statements for 2013 and 2014 showing percentages of net sales for each component (e.g., cost of goods sold divided by net sales). (Round percentages to one decimal place.)
2. accounting Connection Did income from operations increase or decrease from 2013 to 2014? Write a short explanation of why this change occurred.