Prepare a vertical analysis of the income statement shown below. (Round to two d
ID: 2475871 • Letter: P
Question
Prepare a vertical analysis of the income statement shown below. (Round to two decimal places.)
Trucker, Inc.
Income Statement
For the Year Ended December 31, 2017
Net Sales $7,000
Cost of Goods Sold 3,800
Gross Profit 3,200
Operating Expenses:
Selling Expenses 950
Administrative Expenses 670
Total Operating Expenses 1,620
Operating Income 1,580
Other Revenues and (Expenses):
Interest Revenue 0
Interest Expense (750)
Total Revenues and (Expenses) (750)
Income Before Income Taxes 830
Income Tax Expense 150
Net Income $680
Trucker, Inc.
Income Statement
For the Year Ended December 31, 2017
Percent of
Total
Net Sales $xx 100.00
Cost of Goods Sold xx xx
Gross Profit xx xx
Operating Expenses:
Selling Expenses xx xx
Administrative Expenses xx xx
Total Operating Expenses xx xx
Operating Income xx xx
Other Revenues and (Expenses):
Interest Revenue xx dd
Interest Expense (xx) (dd)
Total Other Revenues and (Expenses) (xx) (xx)
Income Before Income Taxes xx xx
Income Tax Expense xx xx
Net Income $xx xx
Explanation / Answer
Particulars Amount $ % of Total Net Sales 7,000 100.00% Cost of Goods Sold 3,800 54.29% Gross Profit 3,200 45.71% Operating Expenses: Selling Expenses 950 13.57% Administrative Expenses 670 9.57% Total Operating Expenses 1,620 23.14% Operative Income 1,580 22.57% Other Revenues and (Expenses) interest revenue - 0.00% Interest Expense (750) -10.71% Total Other Revenue and (Expenses) (750) -10.71% Income before income taxes 830 11.86% income tax Expense 150 2.14% net Income 680 9.71%