Problem:
Sanchez Company reported the following operating results for 2 consecutive years.
2004 Amount Percent of Sales
Sales 500,000
Cost of Goods Sold 320,000
Gross Margin 180,000
Operating Expenses 100,000
Income Before Taxes 80,000
Income Taxes 24,000
Net Income 56,000
2005 Amount Percent of Sales
Sales 480,000
Cost of Goods Sold 307,000
Gross Margin 173,000
Operating Expenses 120,000
Income Before Taxes 53,000
Income Taxes 16,000
Net Income 37,000
Express each income statement component for each of the two years as a percent of sales.