Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

Exercise 16

Decor, Inc., manufactures bathroom equipment.hown below for the current year are the income statements for the company and a common size summary for the industry in which the company operates.Notice that the percentages in the right-hand column are not for Decor, Inc., but are average percentages for the industry.)

Instructions
a.repare a two-column common size income statement for Decor, Inc.he first column should show for Decor, Inc., all items expressed as a percentage of net sales.he second column should show the equivalent industry average for the data given in the problem.he purpose of this common size statement is to compare the operating results of Decor, Inc., with the average for the industry.Round to the nearest percent.)
b.omment specifically on differences between Decor, Inc., and the industry average with respect to gross profit on sales, selling expenses, general and administrative expenses, operating income, net income, and return on assets.uggest possible reasons for the more important disparities.