Question

Exercise 13-04 (Video) Operating data for Riverbed Corp are presented below. Sales revenue Cost of goods sold Selling expenses Administrative expenses Income tax expense Net income 2020 $880,000 618,640 126,720 61,600 30,800 42,240 2019 $540,000 336,420 64,800 39,420 22,680 76,680 Prepare a schedule showing a vertical analysis for 2020 and 2019. (Round percentages to 1 decimal place, e.g. 12.1%.) RIVERBED CORP Condensed Income Statement For the Years Ended December 31 V 2020 2019 Amount Percent Amount Percent Sales $880,000 % $540,000 % Cost of goods sold 618,640 % 336,420 % Gross profit 261,360 % 203,580 % Selling expenses 126,720 % 64,800 % Administrative expenses 61,600 % 39,420 % Total operating expenses 188,320 % 104,220 % Income before income taxes 73,040 % 99,360 % Income tax expense 30,800 % 22,680 % Net income $ 42,240 % $ 76,680 %

Answer 1

RIVERBED CORP
Condensed Income Statement
for the year ended december 31
	2020		2019
	a	b = a / net sales	a	b = a / net sales
Net sales	$ 880,000	100.0%	$ 540,000	100.0%
Cost of goods sold	$ 618,640	70.3%	$ 336,420	62.3%
Gross profit	$ 261,360	29.7%	$ 203,580	37.7%
Selling expense	$ 126,720	14.4%	$    64,800	12.0%
Administrative expense	$    61,600	7.0%	$    39,420	7.3%
Total operating expense	$ 188,320	21.4%	$ 104,220	19.3%
Income before income tax	$    73,040	8.3%	$    99,360	18.4%
income tax expense	$    30,800	3.5%	$    22,680	4.2%
net income	$    42,240	4.8%	$    76,680	14.2%

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