Analyze the common size income statements below for Coast Company:
$\begin{array}{lrr}\text { (in percent) }&2015&2014\\hline
\text { Net sales } & 100 & 100 \
\text { COGS } & 62 & 65\\text { Gross margin }&38&35\\text { Research and development }&9&5\
\text { Selling, general and administrative }&11&17\\text { Restructuring, asset impairments and other charges }&1&8\\text { Income/(loss) from operations }&17&5\\text { Interest expense }&(3)&(1)\
\text { Income/(loss) before taxes }&14&4\\text { Provision for/(benefit from) income taxes }&4&1\
\text { Net income/(loss) }&10&3
\end{array}$

Question

Analyze the common size income statements below for Coast Company:
 $\begin{array}{lrr}\text { (in percent) }&2015&2014\\hline
\text { Net sales } & 100 & 100 \
\text { COGS } & 62 & 65\\text { Gross margin }&38&35\\text { Research and development }&9&5\
\text { Selling, general and administrative }&11&17\\text { Restructuring, asset impairments and other charges }&1&8\\text { Income/(loss) from operations }&17&5\\text { Interest expense }&(3)&(1)\
\text { Income/(loss) before taxes }&14&4\\text { Provision for/(benefit from) income taxes }&4&1\
\text { Net income/(loss) }&10&3
\end{array}$

Quizplus · Accepted Answer

The Answer of Analyze the common size income statements below for Coast Company:
 $\begin{array}{lrr}\text { (in percent) }&2015&2014\\hline
\text { Net sales } & 100 & 100 \
\text { COGS } & 62 & 65\\text { Gross margin }&38&35\\text { Research and development }&9&5\
\text { Selling, general and administrative }&11&17\\text { Restructuring, asset impairments and other charges }&1&8\\text { Income/(loss) from operations }&17&5\\text { Interest expense }&(3)&(1)\
\text { Income/(loss) before taxes }&14&4\\text { Provision for/(benefit from) income taxes }&4&1\
\text { Net income/(loss) }&10&3
\end{array}$

Analyze the Common Size Income Statements Below for Coast Company