Problem 1: (10 points) Prepare a vertical analysis of the income statement shown

Question

Problem 1: (10 points) 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 $7,000 3,800 3,200 Net Sales Cost of Goods Sold Gross Profit Operating Expenses Selling Expenses Administrative Expenses rotal Operating Expenses Operating Income Other Revenues and (Expenses): Interest Revenue Interest Expense Total Revenues and (Expenses) Income Before Income Taxes Income Tax Expense Net Income 950 670 1,620 1,580 (750) (750) 830 150 $680

Explanation / Answer

Vertical analysis :

Amount Percentage Net sales 7000 100% Cost of goods sold 3800 54.29% Gross profit 3200 45.71% Operating expense Selling expense 950 13.57% Administrative expense 670 9.57% Total operating expenses 1620 23.14% Operating income 1580 22.57% Other revenue and (expense) Interest revenue 0 0% Interest expense (750) 10.71% Total revenue and expenses (750) 10.71% Income before income tax 830 11.86% Income tax 150 2.14% Net income 680 9.71%

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---