(8 Points) 1. Fill in the table below. What does the common size income statement analysis
tell you about LMN, Inc?
Common Size Income Statement Analysis for LMN, Inc.
Income Statement
2019
%
Net Sales
$1,110,000
Cost of Goods Sold
650,000
Gross Profit Margin
$460,000
Selling & Administrative Expenses 265,000
Depreciation
$110,000
Operating Profit (EBIT)
$85,000
Interest
$40,000
Earnings Before Taxes
$45,000
Taxes (.40)
$18,000
Net Income
$27,000
(4 Points)
2. Provide two examples of sources of cash flow for the firm and two examples of
uses of cash flow.