Question

Font Paragraph Drawing Prepare a vertical analysis of the income statement shown below. (Round to two decimal places.) Trucker, Inc. Click to add title th ded becenber 31, 2017 Net Sales $7,000 3,800 3,200 Cost of Goods Sold Gross Profit Operating Expenses: Selling Expenses Administrative Expenses Total Operating Expenses Operating Income Other Revenues and (Expenses): 950 670 1,620 1,580 Interest Revenue Interest Expense Total Revenues and (Expenses) Income Before Income Taxes (750) (750) 830 Income Tax Expense Net Income 150 S680

Answer 1

Vertical analysis of Income Statement
Particulars	Amount ($)	Percentage
Net Sales	7,000.00	100.00%
Cost of goods sold	3,800.00	54.29%
Gross profit	3,200.00	45.71%
Operating expenses		0.00%
Selling expenses	950.00	13.57%
Advertising expenses	670.00	9.57%
Total operating expenses	1,620.00	23.14%
Operating income	1,580.00	22.57%
Other revenues / (Expenses)		0.00%
Interest revenues	-	0.00%
Interest expenses	-750.00	-10.71%
Total revenues / (Expenses)	-750.00	-10.71%
Income before income taxes	830.00	11.86%
Income tax expenses	150.00	2.14%
Net Income	680.00	9.71%

In Vertical analysis of Income Statement, each item of revenues and the expenses are expressed as a percentage of the total sales.