Maytag

Sheet11992%1991%Net Sales$3,041,223.001002,970,626.00100Less: Cost of Sales2,339,406.0076.92%2,254,221.0075.88%Gross Profits701,817.0023.08%716,405.0024.12%Selling, general, & Admin expenses528,250.0017.37%524,898.0017.67%Reorganization Expenses95,000.003.12%Operating Income78,567.002.58%191,507.006.45%Interest Expense(75,004.00)-2.47%(75,159.00)-2.53%Other - net3,983.000.13%7,069.000.24%Income before taxes and7,546.000.25%123,417.004.15%Accounting ChangesIncome Taxes(15,900.00)-0.52%(44,400.00)-1.49%Income Before accounting Changes(8,354.00)-0.27%79,017.002.66%Effects of accounting changes for postretirement benefits(30,700.00)-1.01%- 0Net Income (loss)($315,354)-10.37%79,017.002.66%The Common Size Statements reveal that the Cost of Sales are a proportion has gone up by a small amount which is one of the causes of the falling gross income and thus one of the reason for the net loss. The other major change seen over the years is the Reorganization expenses of $ 95000 which is the main reason behind the net loss in the year 1992. Another reason for the loss is the effect of accounting changes for post retirement benefits. Thus from the commonsize statement helps us to understand that the loss in the year 1992 is due to exceptional items. Most of the other expenditure remain same in proportion to sales.

MAYTAG

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