Question

Vertical Analysis of Income Statement Revenue and expense data for Rogan Technologies Co. are as follows: 20Y8 2017 $482,000 $429,000 Sales Cost of goods sold 255,460 197,340 Selling expenses 94,380 Administrative expenses 91,580 96,400 14,460 81,510 21,450 Income tax expense Hide a. Prepare an income statement in comparative form, stating each item for both 2048 and 2047 as a percent of sales. If required, round all amounts as positive numbers.

Answer 1

	20Y8 amount	20Y8 Percent	20Y7 amount	20Y7 Percent
Sales	482000	100.0%	429000	100.0%
Cost of goods sold	255460	53.0%	197340	46.0%
Gross profit	226540	47.0%	231660	54.0%
Selling expenses	91580	19.0%	94380	22.0%
Administrative expenses	96400	20.0%	81510	19.0%
Total expenses	187980	39.0%	175890	41.0%
Income from Operations	38560	8.0%	55770	13.0%
Income tax expense	14460	3.0%	21450	5.0%
Net income	173520	36.0%	154440	36.0%
b
Cost of goods sold as a percentage of sales increased
Net income increased