Question

Accrued Expenses (1 of 2) NetSolutions pays it employees biweekly. During December, NetSolutions paid wages of $950 on December 13 and $1,200 on December 27. As of December 31, NetSolutions owes $250 wages to employees for Monday and Tuesday, December 30 and 31. 250 Dec. 31 Wages Expense Wages Payable Accrued wages. 51 22 250 O NetSolutions paid wages of $1,275 on January 10. This payment includes the $250 of accrued wages recorded on December 31. Jan. 10 Wages Expense Wages Payable Cash 51 22 11 1,025 250 1,275

Answer 1

Answer

Vertical Analysis (Income Statement) = Income Statement Item / Total Sales * 100.

1. Utility expenses

2017

12500/187500= 6.7%

2016

9000/150000= 6%

Utility expense get decreased in 2017. This is expenditure. Increase in expenditure is negative indication for profit and it increase total cost of company

2. Supply expenses

2017

1.4%

2016

2%

This is good for company. This is expenses. Decrease in expenses means increase in profit.

3. miscellaneous expenses

2017

1.2%

2016

1.2%

There is no changement in misc. expenses. Hence no effect in profit margin.