Question

A condensed income statement for Interactive Arts and a partially completed vertical analysis follow. Required: 1. Complete the vertical analysis by computing each missing line item as a percentage of net revenues. TIP: In the prior year (2015) Cost of Goods Sold was 31 percent of Net Revenues, computed as ($1,413+$4,540). (If the percentage is a loss, enter the amount with a negative sign in front of it. Round your answers to the nearest whole percent.) INTERACTIVE ARTS Income Statemeont (summarized) For the Year Ended March 31 (in mlions ofUS. dollars) 2016 2015 $ 4,540 100 % 100 % Net Revenues 4,310 1,413 31 Cost of Goods Sold 1,264 25 Research and Development Expense Sales and Marketing Expense General and Administrative Expense Income from Operations Other Expenses income before Income Tax Income Tax Recovery (Expense) Net Income 1,123 1,124 680 796 15 413 420 10 20 16 910 707 24 1 30 1 886 20 16 677 (56) (1) 270 6 18 % % 830 947

Answer 1

Answer: 2015 INTERACTIVE ARTS Income Statement (Summarized) For the year ended March 31 (in millions of U.S. Dollars) 2016 4,310 1,264 1,123 796 420 707 4,540 1.413 100 Net Revenue Cost of Goods Sold Research and Development Expense Sales and Marketing Expense General and Administrative Expense Income from Operations Other Expenses Income before Income tax Income Tax Recovery (Expense) Net Income 1,124 680 413 910 24 677 270 947 886 -56 830