Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales Cost of merchandise sold Selling expenses Administrative expenses Income tax expense Sales Cost of merchandise sold Gross profit ✓ Selling expenses a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive number Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Amount Current year Percent 100 % $388,000 248,320 Administrative expenses Total operating expenses Income from operations Income tax expense Net income $388,000 248,320 54,320 62,080 7,760 ✓ $353,000 208,270 56,480 52,950 14,120 믐 54,320 62,080 7,760 % % % % % % % % Previous year Amount Previous year Percent 100% $353,000 208,270 56,480 52,950 14,120 % % % % % % % %
Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales Cost of merchandise sold Selling expenses Administrative expenses Income tax expense Sales Cost of merchandise sold Gross profit ✓ Selling expenses a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive number Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Amount Current year Percent 100 % $388,000 248,320 Administrative expenses Total operating expenses Income from operations Income tax expense Net income $388,000 248,320 54,320 62,080 7,760 ✓ $353,000 208,270 56,480 52,950 14,120 믐 54,320 62,080 7,760 % % % % % % % % Previous year Amount Previous year Percent 100% $353,000 208,270 56,480 52,950 14,120 % % % % % % % %
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 1E
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