Income statements for Mariners Corp. for the past two years are as…

Question Answered step-by-step Income statements for Mariners Corp. for the past two years are as… Income statements for Mariners Corp. for the past two years are as follows:Mariners Corp.Income statementsFor The Years Ended December 31, 2016 And 2015 (amounts in thousands of dollars)1 2016 2015 2Sales revenue$57,500.00$50,000.003Cost of goods sold42,000.0030,000.004Gross profit$15,500.00$20,000.005Selling and administrative expense6,600.004,000.006Operating income$8,900.00$16,000.007Interest expense2,000.002,000.008Income before tax$6,900.00$14,000.009Income tax expense2,000.004,000.0010Net income$4,900.00$10,000.00 Required:1.Prepare common-size comparative income statements for the two years for Mariners Corp.2.What observations can you make about the common-size statements? List at least four observations.3.Prepare comparative income statements for Mariners Corp., including columns for the dollars and for the percentage increase or decrease in each item on the statement.4.Identify the two items on the income statement that experienced the largest change from one year to the next. For each of these items, explain where you would look to find additional information about the change.     Accounting Business Financial Accounting CCT MISC Share QuestionEmailCopy link Comments (0)