Question

Operating data for Whispering Winds Corp. are presented below. 2017 2016 $843,200 $649,500 Sales revenue Cost of goods sold 530,500 410,300 Selling expenses 124,100 73,600 Administrative expenses 77,200 53,900 Income tax expense 38,900 24,600 Net income 72,500 87,100 Prepare a schedule showing a vertical analysis for 2017 and 2016. (Round percentages to 1 decimal place, e.g. 12.1%) WHISPERING WINDS CORP. Condensed Income Statement 2017 2016 Amount Percent Amount Percent Sales $843,200 $649,500 Cost of goods sold 530,500 410,300 239,200 Gross profit 312,700 73,600 * 124,100 Selling expenses Administrative expenses 77,200 53,900 se 127.500 201,300 Total operating expenses

Answer 1

WHISPERING WINDS CROP for the year ended , December 31 2016,2017 2017 2016 Amount Percent Amount Percent Sales 843200 100.0% 649500 100.0% Cost of Goods Sold 530500 62.9% 410300 63.2% Gorss Profit 3127001 37.1% 239200 36.8% Selling Expenses 124100 14.7% 73600 11.3% Administrative Expenses 77200 9.2% 53900 8.3% Total operating Expenses 2013001 23.9% 127500 19.6% Incomenbefore income Taxes 1114001 13.2% 111700 17.2% Income Tax Expenses 38900 4.6% 24600 3.8% Net income 72500 8.6% 87100 13.4% Common size income Statement is the Statement which contains the proportion of each Percent = Amount of Item / Sales