Question

Campbell Company reported the following operating results for two consecutive years: Required Compute each income statement component for each of the two years as a percent of sales. (Percentages may not add exactly due to rounding. Round your answers to 1 decimal place. (i.e., .234 should be entered as 23.4)) CAMPBELL COMPANY Vertical Analysis of Income Statements Percentage of Sales 2019 2018 Percentage of Sales Sales $ 1,003,500 100.0 % $ 1,082,000 100.0 Cost of goods sold 551,925 55.0 45.0 598,800 55.3 Gross margin on sales 451,575 483,200 44.6 Operating expenses Income before taxes Income taxes 13.0 130,500 151,400 14.0 321,075 32.0 331,800 30.6 7.0 24.0 % S 248,600 79,400 7.7O 83,200 $ 241,675 Net income 22.9 %

Answer 1

Answer: % of Sales 100.0 % 55.3 % CAMPBELL COMPANY Vertical Analysis of Income Statements 2019 % of Sales 2018 1,003,500 100.0 % $ 1,082,000 551,925 55.0 % $ 598,800 451,575 45.0 % 483,200 130,500 13.0 % 151,400 321,075 32.0 % $ 331,800 79,400 7.9 % $ 83,200 $ 241,675 24.1 % $ 248,600 Sales Cost of Goods sold Gross margin on sales Operating expenses Income before taxes Income taxes Net Income 44.7% 14.0 % 30.7 % 7.7 % 23.0 %